10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 000-03683

Trustmark Corporation

(Exact name of registrant as specified in its charter)

Mississippi	64-0471500
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

248 East Capitol Street, Jackson, Mississippi	39201
(Address of principal executive offices)	(Zip Code)

(601) 208-5111

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of October 31, 2018, there were 67,088,861 shares outstanding of the registrant’s common stock (no par value).

Forward-Looking Statements

Certain statements contained in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future” or the negative of those terms or other words of similar meaning.  You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information.  These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements.  You should be aware that the occurrence of the events described under the caption “Risk Factors” in Trustmark’s filings with the Securities and Exchange Commission could have an adverse effect on our business, results of operations and financial condition.  Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, local, state and national economic and market conditions, including potential market impacts of efforts by the Federal Reserve Board to reduce the size of its balance sheet, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets as well as crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues relating to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, acts of war or terrorism, and other risks described in our filings with the Securities and Exchange Commission.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.  Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

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PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

Trustmark Corporation and Subsidiaries

Consolidated Balance Sheets

($ in thousands)

	(Unaudited)
	September 30, 2018			December 31, 2017
Assets
Cash and due from banks (noninterest-bearing)	$	432,471		$	335,768
Federal funds sold and securities purchased under reverse repurchase agreements		1,000			615
Securities available for sale (at fair value)		1,864,633			2,238,635
Securities held to maturity (fair value: $907,317-2018; $1,046,247-2017)		943,883			1,056,486
Loans held for sale (LHFS)		182,664			180,512
Loans held for investment (LHFI)		8,747,030			8,569,967
Less allowance for loan losses, LHFI		88,874			76,733
Net LHFI		8,658,156			8,493,234
Acquired loans		132,615			261,517
Less allowance for loan losses, acquired loans		1,714			4,079
Net acquired loans		130,901			257,438
Net LHFI and acquired loans		8,789,057			8,750,672
Premises and equipment, net		178,739			179,339
Mortgage servicing rights		101,374			84,269
Goodwill		379,627			379,627
Identifiable intangible assets, net		12,391			16,360
Other real estate		36,475			43,228
Other assets		517,498			532,442
Total Assets	$	13,439,812		$	13,797,953
Liabilities
Deposits:
Noninterest-bearing	$	2,786,539		$	2,978,074
Interest-bearing		8,170,371			7,599,438
Total deposits		10,956,910			10,577,512
Federal funds purchased and securities sold under repurchase agreements		486,865			469,827
Short-term borrowings		190,023			971,049
Long-term Federal Home Loan Bank (FHLB) advances		896			946
Junior subordinated debt securities		61,856			61,856
Other liabilities		143,658			145,062
Total Liabilities		11,840,208			12,226,252
Shareholders' Equity
Common stock, no par value:
Authorized:  250,000,000 shares Issued and outstanding:  67,621,369 shares - 2018; 67,746,094 shares - 2017		14,089			14,115
Capital surplus		362,868			369,124
Retained earnings		1,302,593			1,228,187
Accumulated other comprehensive loss, net of tax		(79,946	)		(39,725	)
Total Shareholders' Equity		1,599,604			1,571,701
Total Liabilities and Shareholders' Equity	$	13,439,812		$	13,797,953

See notes to consolidated financial statements.

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Trustmark Corporation and Subsidiaries

Consolidated Statements of Income

($ in thousands except per share data)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Interest Income
Interest and fees on LHFS & LHFI	$	102,980		$	89,112		$	291,362		$	253,507
Interest and fees on acquired loans		4,033			6,625			13,932			18,077
Interest on securities:
Taxable		16,186			19,291			50,586			57,865
Tax exempt		518			717			1,748			2,328
Interest on federal funds sold and securities purchased under reverse    repurchase agreements		3			14			10			26
Other interest income		1,050			355			3,038			993
Total Interest Income		124,770			116,114			360,676			332,796
Interest Expense
Interest on deposits		14,972			6,381			36,602			15,433
Interest on federal funds purchased and securities sold under repurchase    agreements		1,348			1,301			3,260			3,036
Other interest expense		1,467			4,520			6,574			10,821
Total Interest Expense		17,787			12,202			46,436			29,290
Net Interest Income		106,983			103,912			314,240			303,506
Provision for loan losses, LHFI		8,673			3,672			15,801			9,355
Provision for loan losses, acquired loans		(467	)		(1,653	)		(758	)		(5,822	)
Net Interest Income After Provision for Loan Losses		98,777			101,893			299,197			299,973
Noninterest Income
Service charges on deposit accounts		11,075			11,223			32,579			32,810
Bank card and other fees		7,459			7,150			21,155			21,020
Mortgage banking, net		8,647			4,425			28,958			23,618
Insurance commissions		10,765			10,398			30,919			29,355
Wealth management		7,789			7,530			22,834			22,617
Other, net		1,358			3,740			4,832			11,268
Security gains (losses), net		—			14			—			15
Total Noninterest Income		47,093			44,480			141,277			140,703
Noninterest Expense
Salaries and employee benefits		60,847			57,871			179,297			170,445
Defined benefit plan termination		—			—			—			17,644
Services and fees		16,404			15,133			48,472			45,474
Net occupancy - premises		6,910			6,702			19,962			19,150
Equipment expense		6,200			6,297			18,501			18,457
Other real estate expense, net		1,168			864			1,941			3,006
FDIC assessment expense		1,999			2,816			7,532			8,142
Other expense		11,695			13,403			35,783			44,900
Total Noninterest Expense		105,223			103,086			311,488			327,218
Income Before Income Taxes		40,647			43,287			128,986			113,458
Income taxes		4,394			8,708			16,090			23,596
Net Income	$	36,253		$	34,579		$	112,896		$	89,862
Earnings Per Share
Basic	$	0.54		$	0.51		$	1.67		$	1.33
Diluted	$	0.54		$	0.51		$	1.67		$	1.32
Dividends Per Share	$	0.23		$	0.23		$	0.69		$	0.69

See notes to consolidated financial statements.

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Trustmark Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

($ in thousands)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Net income per consolidated statements of income	$	36,253		$	34,579		$	112,896		$	89,862
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on available for sale securities and    transferred securities:
Net unrealized holding gains (losses) arising during the    period		(7,246	)		(331	)		(35,231	)		3,912
Less: adjustment for net (gains) losses realized in net    income		—			(8	)		—			(9	)
Change in net unrealized holding loss on securities    transferred to held to maturity		730			698			2,182			2,193
Pension and other postretirement benefit plans:
Net change in prior service costs		47			39			140			116
Recognized net loss due to lump sum settlement		31			—			92			—
Change in net actuarial loss		271			219			819			1,187
Recognized net loss due to defined benefit plan termination		—			—			—			10,492
Derivatives:
Change in the accumulated gain (loss) on effective cash    flow hedge derivatives		39			33			458			(61	)
Less: adjustment for (gain) loss realized in net income		(79	)		34			(157	)		143
Other comprehensive income (loss), net of tax		(6,207	)		684			(31,697	)		17,973
Comprehensive income	$	30,046		$	35,263		$	81,199		$	107,835

See notes to consolidated financial statements.

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Trustmark Corporation and Subsidiaries

Consolidated Condensed Statements of Changes in Shareholders' Equity

($ in thousands)

(Unaudited)

	2018			2017
Balance, January 1,	$	1,571,701		$	1,520,208
Net income per consolidated statements of income		112,896			89,862
Other comprehensive income (loss), net of tax		(31,697	)		17,973
Common stock dividends paid		(47,014	)		(47,099	)
Shares withheld to pay taxes, long-term incentive plan		(1,427	)		(1,659	)
Repurchase and retirement of common stock		(7,877	)		—
Compensation expense, long-term incentive plan		3,022			3,250
Balance, September 30,	$	1,599,604		$	1,582,535

See notes to consolidated financial statements.

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Trustmark Corporation and Subsidiaries

Consolidated Statements of Cash Flows

($ in thousands)

(Unaudited)

	Nine Months Ended September 30,
	2018			2017
Operating Activities
Net income per consolidated statements of income	$	112,896		$	89,862
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses, net		15,043			3,533
Depreciation and amortization		29,512			28,781
Net amortization of securities		7,197			8,084
Securities (gains) losses, net		—			(15	)
Gains on sales of loans, net		(16,409	)		(13,633	)
Deferred income tax provision		5,612			4,800
Proceeds from sales of loans held for sale		836,971			885,520
Purchases and originations of loans held for sale		(823,134	)		(895,992	)
Originations of mortgage servicing rights		(12,248	)		(11,630	)
Earnings on bank-owned life insurance		(3,994	)		(3,753	)
Net change in other assets		521			29,599
Net change in other liabilities		14			4,205
Other operating activities, net		(10,268	)		6,280
Net cash provided by operating activities		141,713			135,641
Investing Activities
Proceeds from maturities, prepayments and calls of securities held to maturity		114,531			128,515
Proceeds from maturities, prepayments and calls of securities available for sale		334,852			351,817
Proceeds from sales of securities available for sale		—			27,682
Purchases of securities held to maturity		—			(69,989	)
Purchases of securities available for sale		(14,040	)		(338,532	)
Net proceeds from bank-owned life insurance		1,843			3,630
Net change in federal funds sold and securities purchased    under reverse repurchase agreements		(385	)		4,185
Net change in member bank stock		26,970			739
Net change in loans		(63,796	)		(457,292	)
Purchases of premises and equipment		(10,870	)		(10,963	)
Proceeds from sales of premises and equipment		651			7,792
Proceeds from sales of other real estate		16,490			20,301
Purchases of software		(10,701	)		(3,492	)
Investments in tax credit and other partnerships		(17	)		(5,213	)
Net cash used in business acquisition		—			(19,775	)
Net cash provided by (used in) investing activities		395,528			(360,595	)
Financing Activities
Net change in deposits		379,398			9,572
Net change in federal funds purchased and securities sold under repurchase agreements		17,038			5,786
Net change in short-term borrowings		(780,606	)		283,820
Payments on long-term FHLB advances		(50	)		(49	)
Redemption of junior subordinated debt securities		—			(3,000	)
Common stock dividends		(47,014	)		(47,099	)
Repurchase and retirement of common stock		(7,877	)		—
Shares withheld to pay taxes, long-term incentive plan		(1,427	)		(1,659	)
Net cash provided by (used in) financing activities		(440,538	)		247,371
Net change in cash and cash equivalents		96,703			22,417
Cash and cash equivalents at beginning of period		335,768			327,706
Cash and cash equivalents at end of period	$	432,471		$	350,123

See notes to consolidated financial statements.

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Trustmark Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

Note 1 – Business, Basis of Financial Statement Presentation and Principles of Consolidation

Trustmark Corporation (Trustmark) is a bank holding company headquartered in Jackson, Mississippi.  Through its subsidiaries, Trustmark operates as a financial services organization providing banking and financial solutions to corporate institutions and individual customers through 198 offices at September 30, 2018 in Alabama, Florida, Mississippi, Tennessee and Texas.  

The consolidated financial statements include the accounts of Trustmark and all other entities in which Trustmark has a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation.  Certain reclassifications have been made to prior period amounts to conform to the current period presentation.  

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements, and notes thereto, included in Trustmark’s 2017 Annual Report on Form 10-K.

Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.  In the opinion of Management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of these consolidated financial statements have been included.   The preparation of financial statements in conformity with these accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and income and expense during the reporting periods and the related disclosures.  Although Management’s estimates contemplate current conditions and how they are expected to change in the future, it is reasonably possible that in 2018 actual conditions could vary from those anticipated, which could affect Trustmark’s financial condition and results of operations.  Actual results could differ from those estimates.

Subsequent Events

On October 10, 2018, Hurricane Michael struck the Florida Panhandle causing significant damages.  As of September 30, 2018, Trustmark had 1,787 loans with a balance of $239.7 million and exposure of $282.1 million in the Federal Emergency Management Agency (FEMA) designated disaster areas which includes 12 counties in Florida and 20 counties in Georgia.  Immediately following the storm, Trustmark initiated a process to identify all customers in the FEMA disaster areas.  Efforts are now ongoing to contact those borrowers to offer assistance as well as to establish reasonable estimates of uninsured damage and to adequately assess potential risk to Trustmark.  Management continues to evaluate the impact of Hurricane Michael and is unable to provide a reasonable estimate of the financial impact on Trustmark’s consolidated financial statements at this time.

Note 2 – Business Combinations

On April 7, 2017, Trustmark completed its merger with RB Bancorporation (Reliance), the holding company for Reliance Bank, which had seven offices serving the Huntsville, Alabama metropolitan service area (MSA).  Reliance Bank was merged into Trustmark National Bank simultaneously with the merger of Trustmark and Reliance. Under the terms of the Merger Agreement dated November 14, 2016, Trustmark paid $22.00 in cash for each share of Reliance common stock outstanding, which represented payment to Reliance common shareholders of approximately $23.7 million.  In addition, Trustmark paid off Reliance Preferred Stock of $1.1 million bringing the total consideration paid to $24.8 million.

The merger with Reliance was consistent with Trustmark’s strategic plan to selectively expand the Trustmark franchise and enhance the Trustmark franchise in north Alabama.

This merger was accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805, “Business Combinations.”  Accordingly, the assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the merger date.

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The statement of assets purchased and liabilities assumed in the Reliance merger is presented below at their estimated fair values as of the merger date of April 7, 2017 ($ in thousands):

Assets:
Cash and due from banks	$	5,013
Federal funds sold and securities purchased under reverse repurchase agreements		6,900
Securities		54,843
Acquired loans		117,447
Premises and equipment, net		3,700
Identifiable intangible assets		1,850
Other real estate		475
Other assets		6,037
Total assets		196,265
Liabilities:
Deposits		166,158
Other borrowings		17,469
Other liabilities		1,322
Total liabilities		184,949
Net identifiable assets acquired at fair value		11,316
Goodwill		13,471
Total consideration paid	$	24,787

The excess of the consideration paid over the estimated fair value of the net assets acquired was $13.5 million, which was recorded as goodwill under FASB ASC Topic 805.  The identifiable intangible assets acquired represent the core deposit intangible at fair value at the merger date.  The core deposit intangible is being amortized on an accelerated basis over the estimated useful life, currently expected to be approximately ten years.

Loans acquired from Reliance were evaluated under a fair value process.  Loans with evidence of deterioration in credit quality and for which it was probable at acquisition that Trustmark would not be able to collect all contractually required payments are referred to as acquired impaired loans and accounted for in accordance with FASB ASC Topic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.”  See Note 5 – Acquired Loans for additional information on acquired loans.

The operations of Reliance are included in Trustmark’s operating results from April 7, 2017 and did not have a material impact on Trustmark’s results of operations.  During the second quarter of 2017, Trustmark included merger transaction expenses in other noninterest expense totaling $3.2 million (change in control expense of $1.3 million; professional fees, contract termination and other expenses of $1.9 million).

Fair Value of Acquired Financial Instruments

For financial instruments measured at fair value, Trustmark utilized inputs within Level 2 of the fair value hierarchy to determine the fair value of securities available for sale (included in securities above), time deposits (included in deposits above) and FHLB advances (included in other borrowings above).  Level 3 inputs were used to determine the fair value of acquired loans, identifiable intangible assets and other real estate.  The methodology and significant assumptions used in estimating the fair values of these financial assets and liabilities are as follows:

Securities Available for Sale

Estimated fair values for securities available for sale are based on quoted market prices where available.  If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable instruments.

Acquired Loans

Fair value of acquired loans is determined using a discounted cash flow model based on assumptions regarding the amount and timing of principal and interest payments, estimated prepayments, estimated default rates, estimated loss severity in the event of default and current market rates.

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Identifiable Intangible Assets

The fair value assigned to the identifiable intangible assets, in this case the core deposit intangible, represents the future economic benefits of the potential cost savings from acquiring core deposits in the merger compared to the cost of obtaining alternative funding from market sources.

Other Real Estate

Other real estate was initially recorded at its estimated fair value on the merger date based on independent appraisals less estimated selling costs.

Time Deposits

Time deposits were valued by projecting expected cash flows into the future based on each account’s contracted rate and then determining the present value of those expected cash flows using current rates for deposits with similar maturities.

FHLB Advances

FHLB advances were valued by projecting expected cash flows into the future based on each advance’s contracted rate and then determining the present value of those expected cash flows using current rates for advances with similar maturities.

Please refer to Note 17 – Fair Value for more information on Trustmark’s classification of financial instruments based on valuation inputs within the fair value hierarchy.

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Note 3 – Securities Available for Sale and Held to Maturity

The following tables are a summary of the amortized cost and estimated fair value of securities available for sale and held to maturity at September 30, 2018 and December 31, 2017 ($ in thousands):

	Securities Available for Sale									Securities Held to Maturity
September 30, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Government agency obligations	$	33,511	$	126	$	(1,266	)	$	32,371	$	3,725	$	26	$	—		$	3,751
Obligations of states and political    subdivisions		57,127		201		(64	)		57,264		42,623		173		(156	)		42,640
Mortgage-backed securities
Residential mortgage pass-through    securities
Guaranteed by GNMA		68,844		118		(3,115	)		65,847		12,316		33		(389	)		11,960
Issued by FNMA and FHLMC		713,673		125		(29,324	)		684,474		119,040		3		(4,652	)		114,391
Other residential mortgage-backed    securities
Issued or guaranteed by FNMA,    FHLMC or GNMA		872,699		86		(32,712	)		840,073		600,635		—		(27,473	)		573,162
Commercial mortgage-backed securities
Issued or guaranteed by FNMA,    FHLMC or GNMA		189,248		154		(4,798	)		184,604		165,544		41		(4,172	)		161,413
Total	$	1,935,102	$	810	$	(71,279	)	$	1,864,633	$	943,883	$	276	$	(36,842	)	$	907,317
December 31, 2017
U.S. Government agency obligations	$	45,763	$	322	$	(800	)	$	45,285	$	3,692	$	182	$	—		$	3,874
Obligations of states and political    subdivisions		78,433		850		(54	)		79,229		46,039		1,044		(59	)		47,024
Mortgage-backed securities
Residential mortgage pass-through    securities
Guaranteed by GNMA		66,634		215		(1,103	)		65,746		13,539		207		(73	)		13,673
Issued by FNMA and FHLMC		824,872		827		(11,249	)		814,450		133,975		210		(1,559	)		132,626
Other residential mortgage-backed    securities
Issued or guaranteed by FNMA,    FHLMC or GNMA		1,028,176		1,808		(13,194	)		1,016,790		678,926		1,209		(11,065	)		669,070
Commercial mortgage-backed securities
Issued or guaranteed by FNMA,    FHLMC or GNMA		218,252		426		(1,543	)		217,135		180,315		1,102		(1,437	)		179,980
Total	$	2,262,130	$	4,448	$	(27,943	)	$	2,238,635	$	1,056,486	$	3,954	$	(14,193	)	$	1,046,247

During 2013, Trustmark reclassified approximately $1.099 billion of securities available for sale to securities held to maturity.  The securities were transferred at fair value, which became the cost basis for the securities held to maturity.  At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $46.6 million ($28.8 million, net of tax).  The net unrealized holding loss is amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security.  There were no gains or losses recognized as a result of the transfer.  At September 30, 2018, the net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive loss in the accompanying balance sheet totaled approximately $16.6 million ($12.4 million, net of tax).

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Temporarily Impaired Securities

The tables below include securities with gross unrealized losses segregated by length of impairment at September 30, 2018 and December 31, 2017 ($ in thousands):

	Less than 12 Months					12 Months or More					Total
September 30, 2018	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
U.S. Government agency obligations	$	—	$	—		$	26,421	$	(1,266	)	$	26,421	$	(1,266	)
Obligations of states and political subdivisions		29,786		(179	)		3,791		(41	)		33,577		(220	)
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		24,843		(677	)		49,000		(2,827	)		73,843		(3,504	)
Issued by FNMA and FHLMC		134,720		(3,928	)		655,161		(30,048	)		789,881		(33,976	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or    GNMA		531,793		(14,120	)		865,762		(46,065	)		1,397,555		(60,185	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or    GNMA		168,750		(3,334	)		158,538		(5,636	)		327,288		(8,970	)
Total	$	889,892	$	(22,238	)	$	1,758,673	$	(85,883	)	$	2,648,565	$	(108,121	)
December 31, 2017
U.S. Government agency obligations	$	5,214	$	(113	)	$	29,432	$	(687	)	$	34,646	$	(800	)
Obligations of states and political subdivisions		19,345		(80	)		3,874		(33	)		23,219		(113	)
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		37,304		(351	)		29,446		(825	)		66,750		(1,176	)
Issued by FNMA and FHLMC		506,410		(4,219	)		369,060		(8,589	)		875,470		(12,808	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or    GNMA		755,013		(7,668	)		534,955		(16,591	)		1,289,968		(24,259	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or    GNMA		230,898		(1,719	)		55,288		(1,261	)		286,186		(2,980	)
Total	$	1,554,184	$	(14,150	)	$	1,022,055	$	(27,986	)	$	2,576,239	$	(42,136	)

The unrealized losses shown above are due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality.  Because Trustmark does not intend to sell these securities and it is more likely than not that Trustmark will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, Trustmark does not consider these investments to be other-than-temporarily impaired at September 30, 2018.  There were no other-than-temporary impairments for the nine months ended September 30, 2018 and 2017.

Security Gains and Losses

Gross realized gains or losses as a result of calls and dispositions of securities, as well as any associated proceeds, were as follows for the periods presented ($ in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
Available for Sale	2018		2017			2018		2017
Proceeds from calls and sales of securities	$	—	$	1,273		$	—	$	27,682
Gross realized gains		—		15			—		16
Gross realized (losses)		—		(1	)		—		(1	)

Realized gains and losses are determined using the specific identification method and are included in noninterest income as security gains (losses), net.

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Securities Pledged

Securities with a carrying value of $2.092 billion and $1.834 billion at September 30, 2018 and December 31, 2017, respectively, were pledged to collateralize public deposits and securities sold under repurchase agreements and for other purposes as permitted by law.  At both September 30, 2018 and December 31, 2017, none of these securities were pledged under the Federal Reserve Discount Window program to provide additional contingency funding capacity.  

Contractual Maturities

The amortized cost and estimated fair value of securities available for sale and held to maturity at September 30, 2018, by contractual maturity, are shown below ($ in thousands).  Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	25,525	$	25,554	$	170	$	170
Due after one year through five years		37,426		37,661		41,912		41,934
Due after five years through ten years		3,124		3,054		4,266		4,287
Due after ten years		24,563		23,366		—		—
		90,638		89,635		46,348		46,391
Mortgage-backed securities		1,844,464		1,774,998		897,535		860,926
Total	$	1,935,102	$	1,864,633	$	943,883	$	907,317

Note 4 – Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI

At September 30, 2018 and December 31, 2017, LHFI consisted of the following ($ in thousands):

	September 30, 2018			December 31, 2017
Loans secured by real estate:
Construction, land development and other land	$	1,031,491		$	987,624
Secured by 1-4 family residential properties		1,801,029			1,675,311
Secured by nonfarm, nonresidential properties		2,294,289			2,193,823
Other real estate secured		453,687			517,956
Commercial and industrial loans		1,565,922			1,570,345
Consumer loans		182,709			171,918
State and other political subdivision loans		929,178			952,483
Other loans		488,725			500,507
LHFI		8,747,030			8,569,967
Allowance for loan losses, LHFI		(88,874	)		(76,733	)
Net LHFI	$	8,658,156		$	8,493,234

Loan Concentrations

Trustmark does not have any loan concentrations other than those reflected in the preceding table, which exceed 10% of total LHFI.  At September 30, 2018, Trustmark’s geographic loan distribution was concentrated primarily in its five key market regions: Alabama, Florida, Mississippi, Tennessee and Texas.  Accordingly, the ultimate collectability of a substantial portion of these loans is susceptible to changes in market conditions in these areas.

Nonaccrual and Past Due LHFI

At September 30, 2018 and December 31, 2017, the carrying amounts of nonaccrual LHFI were $67.8 million and $67.6 million, respectively.  Included in these amounts were $33.6 million and $23.2 million, respectively, of nonaccrual LHFI classified as troubled debt restructurings (TDRs).  No material interest income was recognized in the income statement on nonaccrual LHFI for each of the periods ended September 30, 2018 and 2017.

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The following tables provide an aging analysis of past due and nonaccrual LHFI by loan type at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
	Past Due
	30-59 Days		60-89 Days		90 Days orMore (1)		Total		Nonaccrual		Current Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other    land	$	203	$	5	$	—	$	208	$	2,262	$	1,029,021	$	1,031,491
Secured by 1-4 family residential properties		5,626		1,304		447		7,377		15,164		1,778,488		1,801,029
Secured by nonfarm, nonresidential    properties		256		280		—		536		5,389		2,288,364		2,294,289
Other real estate secured		5		—		—		5		742		452,940		453,687
Commercial and industrial loans		1,727		9		21		1,757		33,870		1,530,295		1,565,922
Consumer loans		1,480		241		258		1,979		228		180,502		182,709
State and other political subdivision loans		—		—		—		—		8,762		920,416		929,178
Other loans		419		33		—		452		1,419		486,854		488,725
Total	$	9,716	$	1,872	$	726	$	12,314	$	67,836	$	8,666,880	$	8,747,030

(1) Past due 90 days or more but still accruing interest.

	December 31, 2017
	Past Due
	30-59 Days		60-89 Days		90 Days orMore (1)		Total		Nonaccrual		Current Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other    land	$	391	$	1	$	—	$	392	$	2,105	$	985,127	$	987,624
Secured by 1-4 family residential properties		6,412		2,084		1,917		10,413		19,022		1,645,876		1,675,311
Secured by nonfarm, nonresidential    properties		2,319		256		—		2,575		12,608		2,178,640		2,193,823
Other real estate secured		—		—		—		—		212		517,744		517,956
Commercial and industrial loans		759		1,233		12		2,004		33,338		1,535,003		1,570,345
Consumer loans		2,141		255		242		2,638		135		169,145		171,918
State and other political subdivision loans		350		39		—		389		—		952,094		952,483
Other loans		18		4		—		22		155		500,330		500,507
Total	$	12,390	$	3,872	$	2,171	$	18,433	$	67,575	$	8,483,959	$	8,569,967

(1) Past due 90 days or more but still accruing interest.

Impaired LHFI

Trustmark’s individually evaluated impaired LHFI include all commercial nonaccrual relationships of $500 thousand or more, which are specifically reviewed for impairment and deemed impaired, and all LHFI classified as TDRs in accordance with FASB ASC Topic 310-10-50-20 “Impaired Loans”, and are primarily collateral dependent loans.  Fair value estimates for collateral dependent loans are derived from appraised values based on the current market value or as is value of the collateral, normally from recently received and reviewed appraisals.  Current appraisals are ordered on an annual basis based on the inspection date or more often if market conditions necessitate.  Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property.  These appraisals are reviewed by Trustmark’s Appraisal Review Department to ensure they are acceptable, and values are adjusted down for costs associated with asset disposal.  Once this estimated net realizable value has been determined, the value used in the impairment assessment is updated.  At the time a LHFI that has been individually evaluated for impairment is deemed to be impaired, the full difference between book value and the most likely estimate of the collateral’s net realizable value is charged off.  As subsequent events dictate and estimated net realizable values decline, required reserves may be established or further adjustments recorded.

No material interest income was recognized in the income statement on impaired LHFI for each of the periods ended September 30, 2018 and 2017.

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At September 30, 2018 and December 31, 2017, individually evaluated impaired LHFI consisted of the following ($ in thousands):

	September 30, 2018
	LHFI
	Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Total Carrying Amount		Related Allowance		Average Recorded Investment
Loans secured by real estate:
Construction, land development and other land	$	1,801	$	1,546	$	26	$	1,572	$	—	$	1,747
Secured by 1-4 family residential properties		4,771		126		3,614		3,740		43		4,217
Secured by nonfarm, nonresidential properties		3,585		3,010		360		3,370		78		5,845
Other real estate secured		—		—		—		—		—		—
Commercial and industrial loans		39,845		14,657		19,045		33,702		13,869		28,218
Consumer loans		3		—		3		3		—		6
State and other political subdivision loans		8,765		4,079		4,683		8,762		683		4,381
Other loans		1,432		230		1,076		1,306		1,076		816
Total	$	60,202	$	23,648	$	28,807	$	52,455	$	15,749	$	45,230

	December 31, 2017
	LHFI
	Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Total Carrying Amount		Related Allowance		Average Recorded Investment
Loans secured by real estate:
Construction, land development and other land	$	1,704	$	1,206	$	199	$	1,405	$	75	$	1,923
Secured by 1-4 family residential properties		6,031		160		4,576		4,736		1,331		4,693
Secured by nonfarm, nonresidential properties		15,205		10,027		396		10,423		165		8,321
Other real estate secured		—		—		—		—		—		—
Commercial and industrial loans		36,874		31,281		518		31,799		131		22,734
Consumer loans		17		—		17		17		—		9
State and other political subdivision loans		—		—		—		—		—		—
Other loans		556		—		556		556		41		325
Total	$	60,387	$	42,674	$	6,262	$	48,936	$	1,743	$	38,005

Troubled Debt Restructurings

A TDR occurs when a borrower is experiencing financial difficulties, and for related economic or legal reasons, a concession is granted to the borrower that Trustmark would not otherwise consider.  Whatever the form of concession that might be granted by Trustmark, Management’s objective is to enhance collectability by obtaining more cash or other value from the borrower or by increasing the probability of receipt by granting the concession than by not granting it.  Other concessions may arise from court proceedings or may be imposed by law.  In addition, TDRs also include those credits that are extended or renewed to a borrower who is not able to obtain funds from sources other than Trustmark at a market interest rate for new debt with similar risk.

All loans whose terms have been modified in a TDR are evaluated for impairment under FASB ASC Topic 310, “Receivables”. Accordingly, Trustmark measures any loss on the restructuring in accordance with that guidance.  A TDR in which Trustmark receives physical possession of the borrower’s assets, regardless of whether formal foreclosure or repossession proceedings take place, is accounted for in accordance with FASB ASC Subtopic 310-40, “Troubled Debt Restructurings by Creditors.”  Thus, the loan is treated as if assets have been received in satisfaction of the loan and reported as a foreclosed asset.  At September 30, 2018 and December 31, 2017, Trustmark held $203 thousand and $366 thousand, respectively, of foreclosed residential real estate as a result of foreclosure or in substance repossession of consumer mortgage LHFI classified as TDRs.  At September 30, 2018, Trustmark had $55 thousand of consumer mortgage LHFI classified as TDRs in the process of formal foreclosure proceedings compared to none at December 31, 2017.

A TDR may be returned to accrual status if Trustmark is reasonably assured of repayment of principal and interest under the modified terms and the borrower has demonstrated sustained performance under those terms for a period of at least six months. Otherwise, the restructured loan must remain on nonaccrual.

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At September 30, 2018 and 2017, LHFI classified as TDRs totaled $36.0 million and $24.4 million, respectively, and were primarily comprised of credits with interest-only payments for an extended period of time which totaled $24.7 million and $21.1 million, respectively.  The remaining TDRs at September 30, 2018 and 2017 resulted from bankruptcies or from payment or maturity extensions.  Trustmark had $7.7 million of unused commitments on TDRs at September 30, 2018 compared to no material unused commitments on TDRs at September 30, 2017.  

For TDRs, Trustmark had a related loan loss allowance of $14.3 million and $393 thousand at September 30, 2018 and 2017, respectively.  LHFI classified as TDRs are charged down to the most likely fair value estimate less an estimated cost to sell for collateral dependent loans, which would approximate net realizable value.  Specific charge-offs related to TDRs totaled $4.7 million for the nine months ended September 30, 2018 compared to $126 thousand for the nine months ended September 30, 2017.

The following tables illustrate the impact of modifications classified as TDRs as well as those TDRs modified within the last 12 months for which there was a payment default during the period for the periods presented ($ in thousands):

	Three Months Ended September 30,
	2018						2017
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Loans secured by 1-4    family residential    properties		3	$	121	$	121		1	$	112	$	113
Loans secured by    nonfarm, nonresidential    properties		—		—		—		1		426		426
Commercial and industrial    loans		9		11,153		10,062		6		12,500		12,500
Total		12	$	11,274	$	10,183		8	$	13,038	$	13,039

	Nine Months Ended September 30,
	2018						2017
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Construction, land    development and other    land loans		1	$	22	$	22		1	$	341	$	325
Loans secured by 1-4    family residential    properties		19		1,873		1,432		17		1,280		1,290
Loans secured by    nonfarm, nonresidential    properties		—		—		—		1		426		426
Commercial and industrial    loans		15		22,899		21,791		7		12,744		12,744
Consumer loans		3		4		4		—		—		—
Total		38	$	24,798	$	23,249		26	$	14,791	$	14,785

	Nine Months Ended September 30,
	2018				2017
TDRs that Subsequently Defaulted	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Construction, land development and other land loans		1	$	21		—	$	—
Loans secured by 1-4 family residential properties		6		321		4		64
Commercial and industrial loans		6		13,985		2		—
Total		13	$	14,327		6	$	64

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Trustmark’s TDRs have resulted primarily from allowing the borrower to pay interest-only for an extended period of time rather than from forgiveness.  Accordingly, as shown above, these TDRs have a similar recorded investment for both the pre-modification and post-modification disclosure.  Trustmark has utilized loans 90 days or more past due to define payment default in determining TDRs that have subsequently defaulted.

The following tables detail LHFI classified as TDRs by loan type at September 30, 2018 and 2017 ($ in thousands):

	September 30, 2018
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	26	$	26
Secured by 1-4 family residential properties		563		3,052		3,615
Secured by nonfarm, nonresidential properties		—		360		360
Commercial and industrial loans		1,783		29,636		31,419
Consumer loans		—		3		3
Other loans		—		540		540
Total TDRs	$	2,346	$	33,617	$	35,963

	September 30, 2017
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	272	$	272
Secured by 1-4 family residential properties		14		3,077		3,091
Secured by nonfarm, nonresidential properties		426		436		862
Commercial and industrial loans		—		20,153		20,153
Consumer loans		—		1		1
Total TDRs	$	440	$	23,939	$	24,379

Credit Quality Indicators

Trustmark’s loan portfolio credit quality indicators focus on six key quality ratios that are compared against bank tolerances.  The loan indicators are total classified outstanding, total criticized outstanding, nonperforming loans, nonperforming assets, delinquencies and net loan losses.  Due to the homogenous nature of consumer loans, Trustmark does not assign a formal internal risk rating to each credit and therefore the criticized and classified measures are primarily composed of commercial loans.

In addition to monitoring portfolio credit quality indicators, Trustmark also measures how effectively the lending process is being managed and risks are being identified.  As part of an ongoing monitoring process, Trustmark grades the commercial portfolio as it relates to credit file completion and financial statement exceptions, underwriting, collateral documentation and compliance with law as shown below:

• Credit File Completeness and Financial Statement Exceptions – evaluates the quality and condition of credit files in terms of content and completeness and focuses on efforts to obtain and document sufficient information to determine the quality and status of credits.  Also included is an evaluation of the systems/procedures used to insure compliance with policy.

• Underwriting – evaluates whether credits are adequately analyzed, appropriately structured and properly approved within loan policy requirements.  A properly approved credit is approved by adequate authority in a timely manner with all conditions of approval fulfilled.  Total policy exceptions measure the level of underwriting and other policy exceptions within a loan portfolio.

• Collateral Documentation – focuses on the adequacy of documentation to perfect Trustmark’s collateral position and substantiate collateral value.  Collateral exceptions measure the level of documentation exceptions within a loan portfolio.  Collateral exceptions occur when certain collateral documentation is either not present or not current.

• Compliance with Law – focuses on underwriting, documentation, approval and reporting in compliance with banking laws and regulations.  Primary emphasis is directed to the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), Regulation O requirements and regulations governing appraisals.

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Commercial Credits

Trustmark has established a loan grading system that consists of ten individual credit risk grades (risk ratings) that encompass a range from loans where the expectation of loss is negligible to loans where loss has been established.  The model is based on the risk of default for an individual credit and establishes certain criteria to delineate the level of risk across the ten unique credit risk grades.  Credit risk grade definitions are as follows:

• Risk Rate (RR) 1 through RR 6 – Grades one through six represent groups of loans that are not subject to criticism as defined in regulatory guidance.  Loans in these groups exhibit characteristics that represent low to moderate risk measured by using a variety of credit risk criteria such as cash flow coverage, debt service coverage, balance sheet leverage, liquidity, management experience, industry position, prevailing economic conditions, support from secondary sources of repayment and other credit factors that may be relevant to a specific loan.  In general, these loans are supported by properly margined collateral and guarantees of principal parties.

• Other Assets Especially Mentioned (Special Mention) - (RR 7) – a loan that has a potential weakness that if not corrected will lead to a more severe rating.  This rating is for credits that are currently protected but potentially weak because of an adverse feature or condition that if not corrected will lead to a further downgrade.

• Substandard (RR 8) – a loan that has at least one identified weakness that is well defined.  This rating is for credits where the primary sources of repayment are not viable at the time of evaluation or where either the capital or collateral is not adequate to support the loan and the secondary means of repayment do not provide a sufficient level of support to offset the identified weakness.  Loss potential exists in the aggregate amount of substandard loans but does not necessarily exist in individual loans.

• Doubtful (RR 9) – a loan with an identified weakness that does not have a valid secondary source of repayment.  Generally these credits have an impaired primary source of repayment and secondary sources are not sufficient to prevent a loss in the credit.  The exact amount of the loss has not been determined at this time.

• Loss (RR 10) – a loan or a portion of a loan that is deemed to be uncollectible.

By definition, credit risk grades special mention (RR 7), substandard (RR 8), doubtful (RR 9) and loss (RR 10) are criticized loans while substandard (RR 8), doubtful (RR 9) and loss (RR 10) are classified loans.  These definitions are standardized by all bank regulatory agencies and are generally equally applied to each individual lending institution.  The remaining credit risk grades are considered pass credits and are solely defined by Trustmark.

Each commercial loan is assigned a credit risk grade that is an indication for the likelihood of default and is not a direct indication of loss at default.  The loss at default aspect of the subject risk ratings is neither uniform across the nine primary commercial loan groups or constant between the geographic areas.  To account for the variance in the loss at default aspects of the risk rating system, the loss expectations for each risk rating are integrated into the allowance for loan loss methodology where the calculated loss at default is allotted for each individual risk rating with respect to the individual loan group and unique geographic area.  The loss at default aspect of the reserve methodology is calculated each quarter as a component of the overall reserve factor for each risk grade by loan group and geographic area.

To enhance this process, nonaccrual relationships of $500 thousand or more that are rated in one of the criticized categories are routinely reviewed to establish an expectation of loss, if any, and if such examination indicates that the level of reserve is not adequate to cover the expectation of loss, a special reserve or impairment is generally applied.

The distribution of the losses is accomplished by means of a loss distribution model that assigns a loss factor to each risk rating (1 to 9) in each commercial loan pool.  A factor is not applied to risk rate 10 as loans classified as losses are charged off within the period that the loss is determined and are not carried on Trustmark’s books over quarter-end.

The expected loss distribution is spread across the various risk ratings by the perceived level of risk for loss.  The nine grade scale described above ranges from a negligible risk of loss to an identified loss across its breadth.  The loss distribution factors are graduated through the scale on a basis proportional to the degree of risk that appears manifest in each individual rating and assumes that migration through the loan grading system will occur.

Each loan officer assesses the appropriateness of the internal risk rating assigned to their credits on an ongoing basis.  Trustmark’s Asset Review area conducts independent credit quality reviews of the majority of Trustmark’s commercial loan portfolio both on the underlying credit quality of each individual loan portfolio as well as the adherence to Trustmark’s loan policy and the loan administration process.  In general, Asset Review conducts reviews of each lending area within a six to eighteen month window depending on the overall credit quality results of the individual area.

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In addition to the ongoing internal risk rate monitoring described above, Trustmark’s Credit Quality Review Committee meets monthly and performs a review of all loans of $100 thousand or more that are either delinquent thirty days or more or on nonaccrual.  This review includes recommendations regarding risk ratings, accrual status, charge-offs and appropriate servicing officer as well as evaluation of problem credits for determination of TDRs.  Quarterly, the Credit Quality Review Committee reviews and modifies continuous action plans for all credits risk rated seven or worse for relationships of $100 thousand or more.

In addition, a semi-annual review of significant development, commercial construction, multi-family and non-owner occupied projects is performed.  The review assesses each particular project with respect to location, project valuations, progress of completion, leasing status, current financial information, rents, operating expenses, cash flow, adherence to budget and projections and other information as applicable.  Summary results are reviewed by Senior and Regional Credit Officers in addition to the Chief Credit Officer with a determination as to the appropriateness of existing risk ratings and accrual status.

Consumer Credits

Consumer LHFI that do not meet a minimum custom credit score are reviewed quarterly by Management.  The Retail Credit Review Committee reviews the volume and percentage of approvals that did not meet the minimum passing custom score by region, individual location, and officer to ensure that Trustmark continues to originate quality loans. 

Trustmark monitors the levels and severity of past due consumer LHFI on a daily basis through its collection activities.  A detailed assessment of consumer LHFI delinquencies is performed monthly at both a product and market level by delivery channel, which incorporates the perceived level of risk at time of underwriting. 

The tables below present LHFI by loan type and credit quality indicator at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
		Commercial LHFI
		Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other    land		$	961,316	$	78	$	4,512	$	208	$	966,114
Secured by 1-4 family residential    properties			125,998		175		2,960		60		129,193
Secured by nonfarm, nonresidential    properties			2,259,388		3,052		31,302		484		2,294,226
Other real estate secured			452,095		454		515		—		453,064
Commercial and industrial loans			1,490,431		9,721		63,936		1,834		1,565,922
Consumer loans			—		—		—		—		—
State and other political subdivision loans			913,286		5,250		10,642		—		929,178
Other loans			458,118		15,597		10,469		77		484,261
Total		$	6,660,632	$	34,327	$	124,336	$	2,663	$	6,821,958

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	Consumer LHFI
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other    land	$	65,028	$	3	$	—	$	346	$	65,377	$	1,031,491
Secured by 1-4 family residential    properties		1,651,019		6,566		447		13,804		1,671,836		1,801,029
Secured by nonfarm, nonresidential    properties		63		—		—		—		63		2,294,289
Other real estate secured		623		—		—		—		623		453,687
Commercial and industrial loans		—		—		—		—		—		1,565,922
Consumer loans		180,503		1,721		258		227		182,709		182,709
State and other political subdivision loans		—		—		—		—		—		929,178
Other loans		4,464		—		—		—		4,464		488,725
Total	$	1,901,700	$	8,290	$	705	$	14,377	$	1,925,072	$	8,747,030

	December 31, 2017
		Commercial LHFI
		Pass - Categories 1-6		Special Mention - Category 7		Substandard- Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other    land		$	922,563	$	316	$	3,780	$	222	$	926,881
Secured by 1-4 family residential    properties			127,405		134		4,948		76		132,563
Secured by nonfarm, nonresidential    properties			2,135,749		6,684		50,785		527		2,193,745
Other real estate secured			517,036		—		517		—		517,553
Commercial and industrial loans			1,437,590		28,780		103,089		886		1,570,345
Consumer loans			—		—		—		—		—
State and other political subdivision loans			936,420		5,850		10,213		—		952,483
Other loans			478,083		—		16,390		108		494,581
Total		$	6,554,846	$	41,764	$	189,722	$	1,819	$	6,788,151

	Consumer LHFI
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other    land	$	60,240	$	342	$	—	$	161	$	60,743	$	987,624
Secured by 1-4 family residential    properties		1,516,691		7,874		1,809		16,374		1,542,748		1,675,311
Secured by nonfarm, nonresidential    properties		78		—		—		—		78		2,193,823
Other real estate secured		403		—		—		—		403		517,956
Commercial and industrial loans		—		—		—		—		—		1,570,345
Consumer loans		169,146		2,396		242		134		171,918		171,918
State and other political subdivision loans		—		—		—		—		—		952,483
Other loans		5,926		—		—		—		5,926		500,507
Total	$	1,752,484	$	10,612	$	2,051	$	16,669	$	1,781,816	$	8,569,967

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Past Due Loans Held for Sale (LHFS)

LHFS past due 90 days or more totaled $34.1 million and $35.5 million at September 30, 2018 and December 31, 2017, respectively.  LHFS past due 90 days or more are serviced loans eligible for repurchase, which are fully guaranteed by the Government National Mortgage Association (GNMA).  GNMA optional repurchase programs allow financial institutions to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides servicing.  At the servicer’s option and without GNMA’s prior authorization, the servicer may repurchase such a delinquent loan for an amount equal to 100 percent of the remaining principal balance of the loan.  This buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional.  When Trustmark is deemed to have regained effective control over these loans under the unconditional buy-back option, the loans can no longer be reported as sold and must be brought back onto the balance sheet as loans held for sale, regardless of whether Trustmark intends to exercise the buy-back option.  These loans are reported as held for sale with the offsetting liability being reported as short-term borrowings.

Trustmark did not exercise its buy-back option on any delinquent loans serviced for GNMA during the first nine months of 2018 or 2017.

Allowance for Loan Losses, LHFI

Trustmark’s allowance for loan loss methodology for commercial LHFI is based upon regulatory guidance from its primary regulator and GAAP.  The methodology segregates the commercial purpose and commercial construction LHFI portfolios into nine separate loan types (or pools) which have similar characteristics such as repayment, collateral and risk profiles.  The nine basic loan pools are further segregated into Trustmark’s five key market regions, Alabama, Florida, Mississippi, Tennessee and Texas, to take into consideration the uniqueness of each market.  A 10-point risk rating system is utilized for each separate loan pool to apply a reserve factor consisting of quantitative and qualitative components to determine the needed allowance by each loan type.  As a result, there are 450 risk rate factors for commercial loan types.  The nine separate pools are shown below:

Commercial Purpose LHFI

• Real Estate – Owner-Occupied

• Real Estate – Non-Owner Occupied

• Working Capital

• Non-Working Capital

• Land

• Lots and Development

• Political Subdivisions

Commercial Construction LHFI

• 1 to 4 Family

• Non-1 to 4 Family

The quantitative factors of the allowance methodology reflect a twelve-quarter rolling average of net charge-offs by loan type within each key market region.  This allows for a greater sensitivity to current trends, such as economic changes, as well as current loss profiles and creates a more accurate depiction of historical losses.

Qualitative factors used in the allowance methodology include the following:

• National and regional economic trends and conditions

• Impact of recent performance trends

• Experience, ability and effectiveness of management

• Adherence to Trustmark’s loan policies, procedures and internal controls

• Collateral, financial and underwriting exception trends

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• Credit concentrations

• Loan facility risk

• Acquisitions

• Catastrophe

Each qualitative factor is converted to a scale ranging from 0 (No risk) to 100 (High Risk), other than the last two factors, which are applied on a dollar-for-dollar basis to ensure that the combination of such factors is proportional. The resulting ratings from the individual factors are weighted and summed to establish the weighted-average qualitative factor within each key market region.

The allowance for loan loss methodology segregates the consumer LHFI portfolio into homogeneous pools of loans that contain similar structure, repayment, collateral and risk profiles.  These homogeneous pools of loans are shown below:

• Residential Mortgage

• Direct Consumer

• Junior Lien on 1-4 Family Residential Properties

• Credit Cards

• Overdrafts

The historical loss experience for these pools is determined by calculating a 12-quarter rolling average of net charge-offs, which is applied to each pool to establish the quantitative aspect of the methodology.  Where, in Management’s estimation, the calculated loss experience does not fully cover the anticipated loss for a pool, an estimate is also applied to each pool to establish the qualitative aspect of the methodology, which represents the perceived risks across the loan portfolio at the current point in time.  This qualitative methodology utilizes five separate factors made up of unique components that when weighted and combined produce an estimated level of reserve for each of the loan pools.  The five qualitative factors include the following:

• Economic indicators

• Performance trends

• Management experience

• Credit concentrations

• Loan policy exceptions

The risk measure for each factor is converted to a scale ranging from 0 (No risk) to 100 (High Risk) to ensure that the combination of such factors is proportional.  The determination of the risk measurement for each qualitative factor is done for all markets combined.  The resulting estimated reserve factor is then applied to each pool.

The resulting ratings from the individual factors are weighted and summed to establish the weighted-average qualitative factor of a specific loan portfolio.  This weighted-average qualitative factor is then applied over the five loan pools.

Trustmark’s loan policy dictates the guidelines to be followed in determining when a loan is charged off.  Commercial purpose loans are charged off when a determination is made that the loan is uncollectible and continuance as a bankable asset is not warranted or an impairment evaluation indicates that a value adjustment is necessary.  Consumer loans secured by 1-4 family residential real estate are generally charged off or written down when the credit becomes severely delinquent and the balance exceeds the fair value of the property less costs to sell.  Non-real estate consumer purpose loans, both secured and unsecured, are generally charged off in full during the month in which the loan becomes 120 days past due.  Credit card loans are generally charged off in full when the loan becomes 180 days past due.

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The following tables detail the balance in the allowance for loan losses, LHFI allocated to each loan type segmented by the impairment evaluation methodology used at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	8,414	$	8,414
Secured by 1-4 family residential properties		43		9,265		9,308
Secured by nonfarm, nonresidential properties		78		24,781		24,859
Other real estate secured		—		2,949		2,949
Commercial and industrial loans		13,869		19,448		33,317
Consumer loans		—		3,394		3,394
State and other political subdivision loans		683		510		1,193
Other loans		1,076		4,364		5,440
Total allowance for loan losses, LHFI	$	15,749	$	73,125	$	88,874

	December 31, 2017
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	75	$	7,790	$	7,865
Secured by 1-4 family residential properties		1,331		9,543		10,874
Secured by nonfarm, nonresidential properties		165		23,263		23,428
Other real estate secured		—		2,790		2,790
Commercial and industrial loans		131		22,720		22,851
Consumer loans		—		3,470		3,470
State and other political subdivision loans		—		789		789
Other loans		41		4,625		4,666
Total allowance for loan losses, LHFI	$	1,743	$	74,990	$	76,733

The following tables detail LHFI by loan type related to each balance in the allowance for loan losses, LHFI segregated by the impairment evaluation methodology used at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,572	$	1,029,919	$	1,031,491
Secured by 1-4 family residential properties		3,740		1,797,289		1,801,029
Secured by nonfarm, nonresidential properties		3,370		2,290,919		2,294,289
Other real estate secured		—		453,687		453,687
Commercial and industrial loans		33,702		1,532,220		1,565,922
Consumer loans		3		182,706		182,709
State and other political subdivision loans		8,762		920,416		929,178
Other loans		1,306		487,419		488,725
Total	$	52,455	$	8,694,575	$	8,747,030

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	December 31, 2017
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,405	$	986,219	$	987,624
Secured by 1-4 family residential properties		4,736		1,670,575		1,675,311
Secured by nonfarm, nonresidential properties		10,423		2,183,400		2,193,823
Other real estate secured		—		517,956		517,956
Commercial and industrial loans		31,799		1,538,546		1,570,345
Consumer loans		17		171,901		171,918
State and other political subdivision loans		—		952,483		952,483
Other loans		556		499,951		500,507
Total	$	48,936	$	8,521,031	$	8,569,967

Changes in the allowance for loan losses, LHFI were as follows for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Balance at beginning of period	$	83,566		$	76,184		$	76,733		$	71,265
Transfers (1)		772			—			1,554			—
Loans charged-off		(7,017	)		(2,752	)		(12,980	)		(9,072	)
Recoveries		2,880			3,228			7,766			8,784
Net (charge-offs) recoveries		(4,137	)		476			(5,214	)		(288	)
Provision for loan losses, LHFI		8,673			3,672			15,801			9,355
Balance at end of period	$	88,874		$	80,332		$	88,874		$	80,332

(1) The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank & Trust Company (Bay Bank) merger on March 16, 2012, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage Banking Group (Heritage) acquisition on April 15, 2011 and the Reliance merger on April 7, 2017, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.

The following tables detail changes in the allowance for loan losses, LHFI by loan type for the periods ended September 30, 2018 and 2017 ($ in thousands):

	2018
	Balance January 1,		Transfers (1)		Charge-offs			Recoveries		Provision for Loan Losses			Balance September 30,
Loans secured by real estate:
Construction, land development and other land	$	7,865	$	584	$	(123	)	$	1,039	$	(951	)	$	8,414
Secured by 1-4 family residential properties		10,874		182		(1,435	)		439		(752	)		9,308
Secured by nonfarm, nonresidential properties		23,428		446		(1,117	)		120		1,982			24,859
Other real estate secured		2,790		291		—			17		(149	)		2,949
Commercial and industrial loans		22,851		46		(4,658	)		2,285		12,793			33,317
Consumer loans		3,470		5		(1,585	)		1,545		(41	)		3,394
State and other political subdivision loans		789		—		—			—		404			1,193
Other loans		4,666		—		(4,062	)		2,321		2,515			5,440
Total allowance for loan losses, LHFI	$	76,733	$	1,554	$	(12,980	)	$	7,766	$	15,801		$	88,874

(1) The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger on March 16, 2012, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.

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	2017
	Balance January 1,		Charge-offs			Recoveries		Provision for Loan Losses			Balance September 30,
Loans secured by real estate:
Construction, land development and other land loans	$	9,085	$	(79	)	$	1,257	$	(1,615	)	$	8,648
Secured by 1-4 family residential properties		10,347		(753	)		1,429		(743	)		10,280
Secured by nonfarm, nonresidential properties		20,967		(50	)		289		7,542			28,748
Other real estate secured		2,263		—			31		1,111			3,405
Commercial and industrial loans		22,011		(2,624	)		1,813		(1,420	)		19,780
Consumer loans		3,241		(1,809	)		1,427		1,597			4,456
State and other political subdivision loans		859		—			—		(48	)		811
Other loans		2,492		(3,757	)		2,538		2,931			4,204
Total allowance for loan losses, LHFI	$	71,265	$	(9,072	)	$	8,784	$	9,355		$	80,332

Note 5 – Acquired Loans

Trustmark’s loss-share agreement with the FDIC covering the acquired covered loans secured by 1-4 family residential properties will expire in 2021.

Loans acquired in the Reliance merger completed on April 7, 2017 were evaluated using a fair value process to determine the degree of credit deterioration since origination and the collectibility of contractually required payments.  Approximately $7.9 million of the loans acquired in the Reliance merger exhibited evidence of significant credit deterioration since origination and for which it was probable at acquisition that Trustmark would not be able to collect all contractually required payments.  These loans were accounted for as acquired impaired loans under FASB ASC Topic 310-30.

At September 30, 2018 and December 31, 2017, acquired loans consisted of the following ($ in thousands):

	September 30, 2018			December 31, 2017
Loans secured by real estate:
Construction, land development and other land	$	6,657		$	23,586
Secured by 1-4 family residential properties		25,274			61,751
Secured by nonfarm, nonresidential properties		66,865			114,694
Other real estate secured		8,507			16,746
Commercial and industrial loans		16,610			31,506
Consumer loans		1,514			2,600
Other loans		7,188			10,634
Acquired loans		132,615			261,517
Allowance for loan losses, acquired loans		(1,714	)		(4,079	)
Net acquired loans	$	130,901		$	257,438

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The following table presents changes in the net carrying value of the acquired loans for the periods presented ($ in thousands):

	Acquired Impaired			Acquired Not ASC 310-30 (1)
Carrying value, net at January 1, 2017	$	218,107		$	42,743
Transfers (2)		—			(36,719	)
Additions (3)		7,899			109,548
Accretion to interest income		14,924			1,578
Payments received, net		(68,317	)		(39,208	)
Other (4)		(361	)		(74	)
Change in allowance for loan losses, acquired loans		7,318			—
Carrying value, net at December 31, 2017		179,570			77,868
Transfers (5)(2)		(26,497	)		(43,922	)
Accretion to interest income		7,870			782
Payments received, net		(50,940	)		(16,096	)
Other (4)		(173	)		74
Change in allowance for loan losses, acquired loans		2,365			—
Carrying value, net at September 30, 2018	$	112,195		$	18,706

(1) “Acquired Not ASC 310-30” loans consist of loans that are not in scope for FASB ASC Topic 310-30.

(2) “Acquired Not ASC 310-30”loans transferred to LHFI due to the discount on these loans being fully amortized.

(3) Loans acquired in the Reliance merger on April 7, 2017.

(4) Includes miscellaneous timing adjustments as well as acquired loan terminations through foreclosure, charge-off and other terminations.

(5) During the second quarter of 2018, Trustmark transferred the remaining loans acquired in the Bay Bank merger on March 16, 2012 from acquired impaired loans to LHFI.  During the third quarter of 2018, Trustmark transferred the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017 from acquired impaired loans to LHFI.

Under FASB ASC Topic 310-30, the accretable yield is the excess of expected cash flows at acquisition over the initial fair value of acquired impaired loans and is recorded as interest income over the estimated life of the loans using the effective yield method if the timing and amount of the future cash flows is reasonably estimable.  The following table presents changes in the accretable yield for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2018			2017
Accretable yield at beginning of period	$	(31,426	)	$	(38,918	)
Accretion to interest income		7,870			11,021
Additions due to acquisitions (1)		—			(784	)
Disposals, net		3,452			1,759
Transfers (2)		5,874			—
Reclassification from nonaccretable difference (3)		(4,204	)		(7,204	)
Accretable yield at end of period	$	(18,434	)	$	(34,126	)

(1) Accretable yield on loans acquired from Reliance on April 7, 2017.

(2) During the second quarter of 2018, Trustmark transferred the remaining loans acquired in the Bay Bank merger on March 16, 2012 from acquired impaired loans to LHFI.  During the third quarter of 2018, Trustmark transferred the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017 from acquired impaired loans to LHFI.

(3) Reclassifications from nonaccretable difference are due to lower loss expectations and improvements in expected cash flows.

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The following tables present the components of the allowance for loan losses on acquired loans for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Balance at beginning of period	$	3,046		$	7,423		$	4,079		$	11,397
Transfers (1)		(772	)		—			(1,554	)		—
Net (charge-offs) recoveries		(93	)		(2	)		(53	)		193
Provision for loan losses, acquired loans		(467	)		(1,653	)		(758	)		(5,822	)
Balance at end of period	$	1,714		$	5,768		$	1,714		$	5,768

(1) The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage acquisition and the Reliance merger, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.

As discussed in Note 4 - Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI, Trustmark has established a loan grading system that consists of ten individual credit risk grades (risk ratings) that encompass a range from loans where the expectation of loss is negligible to loans where loss has been established.  The model is based on the risk of default for an individual credit and establishes certain criteria to segregate the level of risk across the ten unique risk ratings.  These credit quality measures are unique to commercial loans.  Credit quality for consumer loans is based on individual credit scores, aging status of the loan and payment activity.

The tables below present the acquired loans by loan type and credit quality indicator at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
			Commercial Loans
			Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development    and other land			$	5,541	$	25	$	296	$	68	$	5,930
Secured by 1-4 family    residential properties				5,594		47		645		—		6,286
Secured by nonfarm,    nonresidential properties				51,123		—		15,223		519		66,865
Other real estate secured				7,906		—		177		424		8,507
Commercial and industrial loans				7,366		—		6,832		2,412		16,610
Consumer loans				—		—		—		—		—
Other loans				4,536		—		2,652		—		7,188
Total acquired loans			$	82,066	$	72	$	25,825	$	3,423	$	111,386
	Consumer Loans
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual (1)		Subtotal		Total Acquired Loans
Loans secured by real estate:
Construction, land development    and other land	$	652	$	75	$	—	$	—	$	727	$	6,657
Secured by 1-4 family    residential properties		17,676		1,044		268		—		18,988		25,274
Secured by nonfarm,    nonresidential properties		—		—		—		—		—		66,865
Other real estate secured		—		—		—		—		—		8,507
Commercial and industrial loans		—		—		—		—		—		16,610
Consumer loans		1,473		41		—		—		1,514		1,514
Other loans		—		—		—		—		—		7,188
Total acquired loans	$	19,801	$	1,160	$	268	$	—	$	21,229	$	132,615

(1) Acquired loans not accounted for under FASB ASC Topic 310-30.

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	December 31, 2017
			Commercial Loans
			Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development    and other land			$	17,150	$	234	$	4,690	$	264	$	22,338
Secured by 1-4 family    residential properties				14,021		298		3,029		—		17,348
Secured by nonfarm,    nonresidential properties				95,147		1,400		17,583		530		114,660
Other real estate secured				12,730		102		3,031		477		16,340
Commercial and industrial loans				22,157		15		7,585		1,749		31,506
Consumer loans				—		—		—		—		—
Other loans				5,874		18		4,742		—		10,634
Total acquired loans			$	167,079	$	2,067	$	40,660	$	3,020	$	212,826
	Consumer Loans
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual (1)		Subtotal		Total Acquired Loans
Loans secured by real estate:
Construction, land development    and other land	$	1,188	$	46	$	14	$	—	$	1,248	$	23,586
Secured by 1-4 family    residential properties		42,008		1,687		584		124		44,403		61,751
Secured by nonfarm,    nonresidential properties		34		—		—		—		34		114,694
Other real estate secured		406		—		—		—		406		16,746
Commercial and industrial loans		—		—		—		—		—		31,506
Consumer loans		2,428		172		—		—		2,600		2,600
Other loans		—		—		—		—		—		10,634
Total acquired loans	$	46,064	$	1,905	$	598	$	124	$	48,691	$	261,517

(1) Acquired loans not accounted for under FASB ASC Topic 310-30.

The following tables provide an aging analysis of contractually past due and nonaccrual acquired loans by loan type at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
	Past Due
	30-59 Days		60-89 Days		90 Days or More (1)		Total		Nonaccrual (2)		Current Loans		Total Acquired Loans
Loans secured by real estate:
Construction, land development    and other land	$	103	$	—	$	25	$	128	$	—	$	6,529	$	6,657
Secured by 1-4 family residential    properties		703		341		288		1,332		—		23,942		25,274
Secured by nonfarm, nonresidential    properties		297		—		1,475		1,772		—		65,093		66,865
Other real estate secured		15		—		—		15		—		8,492		8,507
Commercial and industrial loans		—		—		607		607		—		16,003		16,610
Consumer loans		39		2		—		41		—		1,473		1,514
Other loans		—		—		—		—		—		7,188		7,188
Total acquired loans	$	1,157	$	343	$	2,395	$	3,895	$	—	$	128,720	$	132,615

(1) Past due 90 days or more but still accruing interest.

(2) Acquired loans not accounted for under FASB ASC Topic 310-30.

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	December 31, 2017
	Past Due
	30-59 Days		60-89 Days		90 Days or More (1)		Total		Nonaccrual (2)		Current Loans		Total Acquired Loans
Loans secured by real estate:
Construction, land development and    other land	$	34	$	90	$	861	$	985	$	—	$	22,601	$	23,586
Secured by 1-4 family residential    properties		1,691		614		654		2,959		302		58,490		61,751
Secured by nonfarm, nonresidential    properties		467		73		898		1,438		—		113,256		114,694
Other real estate secured		132		—		—		132		—		16,614		16,746
Commercial and industrial loans		—		—		—		—		2		31,504		31,506
Consumer loans		16		156		—		172		—		2,428		2,600
Other loans		—		—		21		21		—		10,613		10,634
Total acquired loans	$	2,340	$	933	$	2,434	$	5,707	$	304	$	255,506	$	261,517

(1) Past due 90 days or more but still accruing interest.

(2) Acquired loans not accounted for under FASB ASC Topic 310-30.

Note 6 – Mortgage Banking

Mortgage Servicing Rights

The activity in the mortgage servicing rights (MSR) is detailed in the table below for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2018			2017
Balance at beginning of period	$	84,269		$	80,239
Origination of servicing assets		12,248			11,630
Change in fair value:
Due to market changes		13,879			(2,218	)
Due to run-off		(9,022	)		(8,174	)
Balance at end of period	$	101,374		$	81,477

Trustmark determines the fair value of the MSR using a valuation model administered by a third party that calculates the present value of estimated future net servicing income.  Trustmark considers the conditional prepayment rate (CPR), which is an estimated loan prepayment rate that uses historical prepayment rates for previous loans similar to the loans being evaluated, and the discount rate in determining the fair value of the MSR. An increase in either the CPR or discount rate assumption will result in a decrease in the fair value of the MSR, while a decrease in either assumption will result in an increase in the fair value of the MSR.  At September 30, 2018, the fair value of the MSR included an assumed average prepayment speed of 6.86 CPR and an average discount rate of 10.04% compared to an assumed average prepayment speed of 9.25 CPR and an average discount rate of 10.28% at September 30, 2017.

Mortgage Loans Serviced/Sold

During the first nine months of 2018 and 2017, Trustmark sold $820.6 million and $871.9 million, respectively, of residential mortgage loans.  Pretax gains on these sales were recorded to noninterest income in mortgage banking, net and totaled $16.4 million for the first nine months of 2018 compared to $13.6 million for the first nine months of 2017.  The table below details the mortgage loans sold and serviced for others at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018		December 31, 2017
Federal National Mortgage Association	$	4,174,961	$	4,128,614
Government National Mortgage Association		2,492,009		2,421,456
Federal Home Loan Mortgage Corporation		69,617		47,071
Other		22,804		26,864
Total mortgage loans sold and serviced for others	$	6,759,391	$	6,624,005

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Trustmark is subject to losses in its loan servicing portfolio due to loan foreclosures.  Trustmark has obligations to either repurchase the outstanding principal balance of a loan or make the purchaser whole for the economic benefits of a loan if it is determined that the loan sold was in violation of representations or warranties made by Trustmark at the time of the sale, herein referred to as mortgage loan servicing putback expenses.  Such representations and warranties typically include those made regarding loans that had missing or insufficient file documentation, loans that do not meet investor guidelines, loans in which the appraisal does not support the value and/or loans obtained through fraud by the borrowers or other third parties.  Generally, putback requests may be made until the loan is paid in full.  However, mortgage loans delivered to Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC) on or after January 1, 2013 are subject to the Lending and Selling Representations and Warranties Framework updated in May 2014, which provides certain instances in which FNMA and FHLMC will not exercise their remedies, including a putback request, for breaches of certain selling representations and warranties, such as payment history and quality control review.

When a putback request is received, Trustmark evaluates the request and takes appropriate actions based on the nature of the request.  Trustmark is required by FNMA and FHLMC to provide a response to putback requests within 60 days of the date of receipt.  Currently, putback requests primarily relate to 2009 through 2013 vintage mortgage loans.  The total mortgage loan servicing putback expenses are included in other expense.

Changes in the reserve for mortgage loan servicing putback expense for mortgage loans were as follows for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2018		2017
Balance at beginning of period	$	1,000	$	1,130
Provision for putback expenses		—		164
Other (1)		—		706
Balance at end of period	$	1,000	$	2,000

(1) Includes fair value adjustments for loans transferred due to underwriting issues as well as adjustments based on Trustmark’s mortgage loan servicing putback reserve analysis.    

There is inherent uncertainty in reasonably estimating the requirement for reserves against potential future mortgage loan servicing putback expenses.  Future putback expenses are dependent on many subjective factors, including the review procedures of the purchasers and the potential refinance activity on loans sold with servicing released and the subsequent consequences under the representations and warranties.  Trustmark believes that it has appropriately reserved for potential mortgage loan servicing putback requests.

Note 7 – Other Real Estate

At September 30, 2018, Trustmark’s geographic other real estate distribution was concentrated primarily in its five key market regions: Alabama, Florida, Mississippi, Tennessee and Texas.  The ultimate recovery of a substantial portion of the carrying amount of other real estate is susceptible to changes in market conditions in these areas.

For the periods presented, changes and gains (losses), net on other real estate were as follows ($ in thousands):

	Nine Months Ended September 30,
	2018			2017
Balance at beginning of period	$	43,228		$	62,051
Additions (1)		10,368			7,481
Disposals		(15,264	)		(18,583	)
Write-downs		(1,857	)		(2,593	)
Balance at end of period	$	36,475		$	48,356
Gains (losses), net on the sale of other real estate included in    other real estate expense	$	1,226		$	1,722

(1) Includes $475 thousand of other real estate acquired in the Reliance merger on April 7, 2017.

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At September 30, 2018 and December 31, 2017, other real estate by type of property consisted of the following ($ in thousands):

	September 30, 2018		December 31, 2017
Construction, land development and other land properties	$	18,976	$	27,491
1-4 family residential properties		5,266		5,081
Nonfarm, nonresidential properties		12,050		10,468
Other real estate properties		183		188
Total other real estate	$	36,475	$	43,228

At September 30, 2018 and December 31, 2017, other real estate by geographic location consisted of the following ($ in thousands):

	September 30, 2018		December 31, 2017
Alabama	$	7,526	$	11,714
Florida		8,931		13,937
Mississippi (1)		18,191		14,260
Tennessee (2)		1,083		2,535
Texas		744		782
Total other real estate	$	36,475	$	43,228

(1) Mississippi includes Central and Southern Mississippi Regions

(2) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions

Note 8 – Deposits

At September 30, 2018 and December 31, 2017, deposits consisted of the following ($ in thousands):

	September 30, 2018		December 31, 2017
Noninterest-bearing demand	$	2,786,539	$	2,978,074
Interest-bearing demand		2,739,245		2,432,814
Savings		3,538,125		3,408,183
Time		1,893,001		1,758,441
Total	$	10,956,910	$	10,577,512

Note 9 – Securities Sold Under Repurchase Agreements

Trustmark utilizes securities sold under repurchase agreements as a source of borrowing in connection with overnight repurchase agreements offered to commercial deposit customers by using its unencumbered investment securities as collateral.  Trustmark accounts for its securities sold under repurchase agreements as secured borrowings in accordance with FASB ASC Topic 860-30, “Transfers and Servicing – Secured Borrowing and Collateral.”  Securities sold under repurchase agreements are stated at the amount of cash received in connection with the transaction.  Trustmark monitors collateral levels on a continual basis and may be required to provide additional collateral based on the fair value of the underlying securities.  Securities sold under repurchase agreements were secured by securities with a carrying amount of $167.1 million and $200.9 million at September 30, 2018 and December 31, 2017, respectively.  Trustmark’s repurchase agreements are transacted under master repurchase agreements that give Trustmark, in the event of default by the counterparty, the right of offset with the same counterparty.  As of September 30, 2018, all repurchase agreements were short-term and consisted primarily of sweep repurchase arrangements, under which excess deposits are “swept” into overnight repurchase agreements with Trustmark.  The following table presents the securities sold under repurchase agreements by collateral pledged at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018		December 31, 2017
Mortgage-backed securities
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA	$	41,650	$	68,246
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		48,861		50,448
Total securities sold under repurchase agreements	$	90,511	$	118,694

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Note 10 – Revenue from Contracts with Customers

Effective January 1, 2018, 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.

General Banking Division

Service Charges on Deposit Accounts

In general, deposit accounts represent contracts with customers with no fixed duration and can be terminated or modified by either party at any time without compensation to the other party.  According to FASB ASC Topic 606, a contract that can be terminated by either party without compensation does not exist for periods beyond the then-current period.  Therefore, deposit contracts are considered to renew day-to-day if not minute-to-minute.

Deposit contracts have a single continuous or stand-ready service obligation whereby Trustmark makes customer funds available for use by the customer as and when the customer chooses as well as other services such as statement rendering and online banking.  The specific services provided vary based on the type of deposit account.  These services are not individually distinct, but are distinct as a group, and therefore, constitute a single performance obligation which is satisfied over time and qualifies as a series of distinct service periods.

Trustmark receives a fixed service charge amount as consideration monthly for services rendered.  The service charge amount varies based on the type of deposit account.  Some of the service charge revenue is subject to refund provisions, which is variable consideration under the guidelines of FASB ASC Topic 606.  Trustmark has elected the ‘as-invoiced’ practical expedient permitted under FASB ASC Topic 606 for recognition of service charge revenue.  Therefore, revenue is recognized at the time and in the amount the customer is charged.  The service charge revenue is presented net of refunded amounts on Trustmark’s consolidated statements of income.

Services related to non-sufficient funds, overdrafts, excess account activity, stop payments, dormant accounts, etc. are considered optional purchases for a deposit contract because there is no performance obligation for Trustmark until the service is requested by the customer or the occurrence of a triggering event.  Fees for these services are fixed amounts and are charged to the customer when the service is performed.  Revenue is recognized at the time the customer is charged.

Bank Card and Other Fees

Revenue from contracts with customers in bank card and other fees includes income related to interchange fees and various other contracts which primarily consists of contracts with a single performance obligation that is satisfied at a point in time. Trustmark receives a fixed consideration amount once the performance obligation is completed for these contracts.  Trustmark reports revenue from these contracts net of amounts refunded or due to a third party.

Interchange Fees

As both a debit and credit card issuer, Trustmark receives an interchange fee for every card transaction completed by its customers with a merchant.  Trustmark receives two types of interchange fees: point-of-sale transactions in which the customer must enter the PIN associated with the card to complete the transaction (a debit card transaction), and signature transactions in which the signature of the customer is required to complete the transaction (a credit card transaction).

Trustmark, as the card issuing or settlement bank, has a contract (implied based on customary business practices) with the payment network in which Trustmark has a single continuous service obligation to make funds available for settlement of the card transaction.  Trustmark’s service obligation is satisfied over time and qualifies as a series of distinct service periods.  Trustmark receives interchange fees as consideration for services rendered in the amount established by the respective payment network.  The interchange fees are established by the payment network based on the type of transaction and is posted on their website.  Trustmark receives and records interchange fee revenue from the payment networks daily net of all fees and amounts due to the payment network.

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Other Income

Revenue from contracts with customers in other income includes income related to cash management services and other contracts with a single performance obligation that is satisfied at a point in time.  Trustmark receives a fixed consideration amount once the performance obligation is completed for these contracts.  Trustmark reports revenue from these contracts net of amounts refunded or due to a third party.

Cash Management Services

Trustmark provides cash management services through the delivery of various products and services offered to its business and municipal customers including various departments of state, city and local governments, universities and other non-profit entities.  Similar to the deposit account contracts, the cash management contracts primarily represent contracts with customers with no fixed duration and can be terminated or modified by either party at any time without compensation to the other party.  Therefore, cash management contracts are generally considered to renew day-to-day if not minute-to-minute.  

Cash management contracts have a single continuous or stand-ready service obligation whereby Trustmark makes a specific service or group of services available for use by the customer as and when the customer chooses.  The specific services provided vary based on the type of account or product.  These services are not individually distinct, but are distinct as a group, and therefore, constitute a single performance obligation which is satisfied over time and qualifies as a series of distinct service periods.

Trustmark receives a set service charge or maintenance fee amount as consideration monthly for services rendered.  However, some of the fees are based on the number of transactions that occur (i.e. flat fee for a set number of transactions per month then an additional charge for each transaction after that) or the average daily account balance maintained by the customer during the month and a small amount of the cash management fee revenue is subject to refund provisions.  These fees represent variable consideration under the guidelines of FASB ASC Topic 606.  Trustmark has elected the ‘as-invoiced’ practical expedient permitted under FASB ASC Topic 606 for recognition of cash management fee revenue.  The cash management revenue is presented net of any refunded amounts on Trustmark’s consolidated statements of income.

Trustmark’s merchant services provider contracts directly with Trustmark business customers and provides Trustmark’s merchant customers card processing equipment and transaction processing services.  Trustmark’s contract with the merchant services provider has a single-continuous service obligation to provide customer referrals for potential new accounts which is satisfied over time and qualifies as a series of distinct service periods.  Trustmark receives a flat fee for each new account established and a percentage of the residual income related to transactions processed for Trustmark’s merchant customers each month as provided in the contract.  Under the guidelines of FASB ASC Topic 606, the fee received for each new account and the profit sharing represent variable consideration.  Revenue from merchant card services contracts is recognized monthly using a time-elapsed measure of progress.  Trustmark has elected the ‘as-invoiced’ practical expedient permitted under FASB ASC Topic 606 for recognition of the merchant card services revenue.

Other Real Estate

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.  Other real estate sales for the three and nine months ended September 30, 2018 resulted in net gains of $224 thousand and $1.2 million, respectively, compared to $200 thousand and $1.7 million for the three and nine months ended September 30, 2017, respectively.

In general, purchases of Trustmark’s other real estate property are not financed by Trustmark.  Financing the purchase of other real estate is evaluated based upon the same lending policies and procedures as all other types of loans.  Under FASB ASC Topic 610-20, “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets,” when Trustmark finances the sale of its other real estate to a buyer, Trustmark is required to assess whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable.  Once these two criteria are met, Trustmark derecognizes the other real estate asset and records a gain or loss on the sale once control of the property is transferred to the buyer.

Wealth Management Division

Trust Management

There are five categories of revenue included in trust management: personal trust and investments, retirement plan services, institutional custody, corporate trust and other.  Each of these categories includes multiple types of contracts, service obligations and fee income.  However, the majority of these contracts include a single service obligation that is satisfied over time, the customer is charged in arrears for services rendered and revenue is recognized when payment is received.  In general, the time period between

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when the service obligation is completed and when payment from the customer is received is less than 30 days.  Revenue from trust management contracts is primarily related to monthly service periods and based on the prior month-end’s market value.  Some trust management revenue is mandated by a court order, while other revenue consists of flat fees.  Trust management revenue based on an account’s market value represents variable consideration under the guidelines of FASB ASC Topic 606.  Trustmark has elected the ‘as-invoiced’ practical expedient allowed under FASB ASC Topic 606 to account for the trust management revenue.

Investment Services

Investment services includes both brokerage and annuity income.  Trustmark has a contract with a third-party investment services company which contains a single continuous service obligation, to provide broker-dealer and advisory services to customers on behalf of the third-party, which is satisfied over time and qualifies as a series of distinct service periods.  Trustmark serves as the agent between the third-party investment services company, the principle, and the customer.  In accordance with the contract, Trustmark receives a monthly payment from the investment services company for commissions and advisory fees (asset management fees) earned on transactions completed in the prior month net of all charges and fees due to the investment services company.  Trustmark recognizes revenue from the investment services company, net of the revenue sharing expense due to the investment services company, when the payments are received.  Commissions vary from month-to-month based on the specific products and transactions completed.  The advisory fees vary based on the average daily balance of the managed assets for the period.  The commissions and advisory fees represent variable consideration under FASB ASC Topic 606.  Trustmark has elected the ‘as-invoiced’ practical expedient allowed under FASB ASC Topic 606 to recognize revenue from the investment services company.

Insurance Division

Fisher Brown Bottrell Insurance, Inc. (FBBI), a wholly-owned subsidiary of TNB, operates as an insurance broker representing the policyholder and has no allegiance with any one insurance provider.  FBBI serves as the agent between the insurance provider (either insurance carrier or broker), the principal, and the policy holder, the customer.  FBBI has four general categories of insurance contracts: commercial, commercial installments, personal and employee benefits.  FBBI’s insurance contracts contain a single performance obligation, policy placement, which is satisfied at a point in time.  FBBI’s performance obligation is satisfied as of the policy effective date.

In addition to policy placement, FBBI provides various other periodic services to the policyholders for which no additional fee is charged.  These additional services are not considered material to the overall contract.  Trustmark has elected the immaterial promises practical expedient allowed under FASB ASC Topic 606, which allows Trustmark to not assess whether promised services are performance obligations if the promised services are immaterial in the context of the contract.  Therefore, the immaterial additional services offered to policyholders are not considered a performance obligation and no amount of the contract transaction price is allocated to these services.

In general, the transaction price for the insurance contracts is an established commission amount agreed upon by FBBI and the insurance provider.  The commission amount varies based on the insurance provider and the type of policy.  There are a small number of insurance contracts which FBBI does not receive a commission, but charges a fee directly to the policyholder.  

Most of the commissions from insurance contracts are subject to clawback provisions which require FBBI to refund a prorated amount of the commissions received as a result of policy cancellations or lapses.  Commissions subject to clawback provisions are considered variable consideration under FASB ASC Topic 606.  Trustmark believes the expected value method of estimating the commissions subject to clawback provisions would best predict the amount of commissions FBBI will be entitled to because of the large number of insurance contracts with similar characteristics and the number of possible outcomes.  FBBI calculates a separate weighted-average percentage (returned commissions percentage) based on actual cancellations over the previous three years for commercial lines, bonds, and personal lines.  FBBI applies the respective returned commissions percentage to the commission revenue earned related to insurance contracts within these three lines each month to calculate the estimated returned commissions amount, which represents the variable consideration subject to variable constraint.  Revenue from insurance contracts is reported net of the variable consideration subject to variable constraint.  FBBI performs an analysis of the returned commissions reserve quarterly and adjusts the reserve balance based on all available information including actual cancellations and the remaining term of the contract.  The returned commissions percentage is updated annually.  

Insurance Producers at FBBI earn commission as compensation for each policy they are responsible for placing.  Commissions are not paid to Producers immediately at the policy effective date, can be subject to clawback provisions and can vary by Producer.  Producers receive the commissions for which they are entitled at the end of the month following the month in which the policy became effective.  Effective April 1, 2018, FBBI implemented a ‘pay when paid’ system.  Under the ‘pay when paid’ system, Producers receive the commissions for which they are entitled at the end of the month following the month in which FBBI receives payment from the insurance provider or customer.  Under FASB ASC Subtopic 340-40, “Other Assets and Deferred Costs: Contracts with Customers,”

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the commission paid to the Producers is an incremental cost of obtaining a contract, which should be capitalized and amortized in a manner consistent with the pattern of transfer of the service related to the contract acquisition asset.  Insurance contracts have a term of one year or less; therefore, Trustmark has elected the cost of obtaining a contract practical expedient allowed under FASB ASC Subtopic 340-40, which allows FBBI to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the contract asset that FBBI otherwise would have recognized is one year or less.  Commission expense is recorded as noninterest expense in salaries and employee benefits when paid to the Producers.

Commercial Insurance

Revenue from FBBI’s commercial insurance contracts (both agency billed and direct billed) consists of a set commission amount, which is subject to clawback provisions.  Revenue from commercial insurance contracts is recognized on the policy effective date, and a corresponding commission receivable is recorded concurrent with the revenue until payment is received by FBBI.  Effective April 1, 2018, FBBI utilizes a ‘pay when paid’ system to account for commercial insurance contracts.  Under the ‘pay when paid’ system, an estimated commission amount is entered in the system when a commercial insurance contract is placed.  FBBI records a top line receivable based on the estimated commission amount entered in the system each month, along with a corresponding amount recognized as revenue, and then adjusts the estimated receivable when the commissions are received from the insurance provider or customer.  

Commercial Installment Insurance

Revenue from commercial installment insurance contracts consists of a set commission amount, which is not subject to clawback provisions, and is recognized in twelve equal monthly installments when invoiced by FBBI in the agency management system.  FBBI has only a small number of commercial installment insurance contracts and these contracts all have a term of one year; therefore, recognizing the revenue from these contracts over twelve months is not materially different than recognizing the revenue in full at the policy effective date for any given period.

Effective April 1, 2018, as a result of implementing this ‘pay when paid’ system, as applied to insurance contracts, revenue from commercial installment contracts is recognized in the same manner as commercial insurance contracts.

Personal Insurance

Revenue from FBBI’s personal insurance contracts consists of a set commission amount, which is subject to clawback provisions, and is recognized when payment is received (generally 30-60 days after the policy effective date).  Personal insurance contracts have a term of one year; therefore, recognizing the revenue from these contracts when payment is received is not materially different than recognizing the revenue at the policy effective date for any given period.  

Employee Benefits Insurance

Revenue from FBBI’s employee benefits insurance contracts consists of a variable commission amount, which is not subject to clawback provisions, and is recognized when payment is received, typically on a monthly basis.  Employee benefits insurance contracts have a set commission rate, but can vary from period to period based on changes in the number of employees covered by the policy (i.e. new hires and terminations).  FBBI generally receives twelve monthly commission payments for these contracts with the initial payment being received approximately 60-90 days after the policy effective date.  Under the guidelines of FASB ASC Topic 606, commissions from employee benefits insurance contracts represent fixed consideration because at contract inception (policy effective date) there is a set commission rate times a known number of covered employees.  Changes in the number of covered employees are not known, nor can they be predicted, at contract inception.  An increase or decrease in the number of covered employees after the policy effective date is considered a contract modification resulting from a change in scope and transaction price under FASB ASC Topic 606.  This modification is treated as part of the existing contract because it does not add a distinct service.  Employee benefits insurance contracts have a term of one year; therefore, recognizing the revenue from these contracts when payment is received is not materially different than recognizing the revenue at the policy effective date or the contract modification date for any given period.

Contingency Commission Insurance

In addition to the insurance contracts discussed above, FBBI has contracts with various insurance providers for which it receives contingency income based on volume of business and claims experience.  FBBI is the principal and the insurance provider is the customer for these contingency commission insurance contracts.  The contingency commission contracts have a single continuous or stand-ready service obligation whereby FBBI places policies with policyholders when acceptable to the insurance provider, which is satisfied over time.  The contract term for these contingency commission contracts is one year.  Revenue is recognized from the

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contingency commission contracts monthly using a time-elapsed measure of progress.  FBBI accrues throughout the current year the amount of contingency commission income it expects to receive in the following year adjusted for a degree of uncertainty.  FBBI updates a detail by insurance provider with the contingency commission income received, which is then compared to the total amount that was expected to be received.  If actual receipts are higher or lower than the amount accrued in the prior year, the monthly accrual for the current year is adjusted accordingly.

Under the guidelines of FASB ASC Topic 606, revenue from contingency commission insurance contracts represents variable consideration and should be estimated using one of the two allowable methods subject to the variable consideration constraint.  FBBI believes the most likely amount method to be the most appropriate method for estimating the variable consideration as there are only a few possible outcomes for each contract.  

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, 2018							Three Months Ended September 30, 2017 (1)
	Topic 606		Not Topic 606 (2)			Total		Topic 606		Not Topic 606 (2)		Total
General Banking Division
Service charges on deposit accounts	$	11,074	$	—		$	11,074	$	11,222	$	—	$	11,222
Bank card and other fees		6,503		937			7,440		7,104		23		7,127
Mortgage banking, net		—		8,647			8,647		—		4,425		4,425
Wealth management		70		—			70		64		—		64
Other, net		1,685		(359	)		1,326		1,495		2,223		3,718
Security gains (losses), net		—		—			—		—		14		14
Total noninterest income	$	19,332	$	9,225		$	28,557	$	19,885	$	6,685	$	26,570
Wealth Management Division
Service charges on deposit accounts	$	1	$	—		$	1	$	1	$	—	$	1
Bank card and other fees		19		—			19		23		—		23
Wealth management		7,719		—			7,719		7,466		—		7,466
Other, net		1		29			30		—		22		22
Total noninterest income	$	7,740	$	29		$	7,769	$	7,490	$	22	$	7,512
Insurance Division
Insurance commissions	$	10,765	$	—		$	10,765	$	10,398	$	—	$	10,398
Other, net		2		—			2		—		—		—
Total noninterest income	$	10,767	$	—		$	10,767	$	10,398	$	—	$	10,398
Consolidated
Service charges on deposit accounts	$	11,075	$	—		$	11,075	$	11,223	$	—	$	11,223
Bank card and other fees		6,522		937			7,459		7,127		23		7,150
Mortgage banking, net		—		8,647			8,647		—		4,425		4,425
Insurance commissions		10,765		—			10,765		10,398		—		10,398
Wealth management		7,789		—			7,789		7,530		—		7,530
Other, net		1,688		(330	)		1,358		1,495		2,245		3,740
Security gains (losses), net		—		—			—		—		14		14
Total noninterest income	$	37,839	$	9,254		$	47,093	$	37,773	$	6,707	$	44,480

(1) Trustmark elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and maynot be comparable to current year presentation.

(2) 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 securitygains (losses), net.

36

	Nine Months Ended September 30, 2018						Nine Months Ended September 30, 2017 (1)
	Topic 606		Not Topic 606 (2)		Total		Topic 606		Not Topic 606 (2)		Total
General Banking Division
Service charges on deposit accounts	$	32,577	$	—	$	32,577	$	32,809	$	—	$	32,809
Bank card and other fees		19,865		1,227		21,092		20,777		208		20,985
Mortgage banking, net		—		28,958		28,958		—		23,618		23,618
Wealth management		210		—		210		210		—		210
Other, net		4,666		84		4,750		4,997		6,196		11,193
Security gains (losses), net		—		—		—		—		15		15
Total noninterest income	$	57,318	$	30,269	$	87,587	$	58,793	$	30,037	$	88,830
Wealth Management Division
Service charges on deposit accounts	$	2	$	—	$	2	$	1	$	—	$	1
Bank card and other fees		63		—		63		35		—		35
Wealth management		22,624		—		22,624		22,407		—		22,407
Other, net		3		76		79		—		70		70
Total noninterest income	$	22,692	$	76	$	22,768	$	22,443	$	70	$	22,513
Insurance Division
Insurance commissions	$	30,919	$	—	$	30,919	$	29,355	$	—	$	29,355
Other, net		3		—		3		5		—		5
Total noninterest income	$	30,922	$	—	$	30,922	$	29,360	$	—	$	29,360
Consolidated
Service charges on deposit accounts	$	32,579	$	—	$	32,579	$	32,810	$	—	$	32,810
Bank card and other fees		19,928		1,227		21,155		20,812		208		21,020
Mortgage banking, net		—		28,958		28,958		—		23,618		23,618
Insurance commissions		30,919		—		30,919		29,355		—		29,355
Wealth management		22,834		—		22,834		22,617		—		22,617
Other, net		4,672		160		4,832		5,002		6,266		11,268
Security gains (losses), net		—		—		—		—		15		15
Total noninterest income	$	110,932	$	30,345	$	141,277	$	110,596	$	30,107	$	140,703

(1) Trustmark elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and maynot be comparable to current year presentation.

(2) 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 securitygains (losses), net.

37

Note 11 – Defined Benefit and Other Postretirement Benefits

Qualified Pension Plans

Trustmark Capital Accumulation Plan

Trustmark maintained a noncontributory tax-qualified defined benefit pension plan titled the Trustmark Capital Accumulation Plan (the Plan) in which substantially all associates who began employment prior to 2007 participated.  The Plan provided for retirement benefits based on the length of credited service and final average compensation, as defined in the Plan, which vested upon three years of service.  On July 26, 2016, the Board of Directors of Trustmark authorized the termination of the Plan, effective as of December 31, 2016.  As a result of the termination of the Plan, each participant became fully vested in their accrued benefits under the Plan.  Final distributions were completed during the second quarter of 2017.  

Trustmark Corporation Pension Plan for Certain Employees of Acquired Financial Institutions

To satisfy commitments made by Trustmark to associates covered through plans obtained in acquisitions and subsequently merged into the Plan (collectively, the Continuing Associates), on July 26, 2016, the Board of Directors of Trustmark also approved the spin-off of the portion of the Plan associated with the accrued benefits of the Continuing Associates into a new plan titled the Trustmark Corporation Pension Plan for Certain Employees of Acquired Financial Institutions (the Continuing Plan), effective as of December 30, 2016, immediately prior to the termination of the Plan.

The following table presents information regarding the net periodic benefit cost for the Plan and the Continuing Plan for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Service cost	$	69		$	64		$	208		$	190
Interest cost		83			102			249			1,394
Expected return on plan assets		(57	)		(51	)		(171	)		(267	)
Recognized net loss due to lump sum settlements		41			—			121			—
Recognized net loss due to defined benefit plan termination		—			—			—			17,644
Recognized net actuarial loss		143			142			428			1,272
Net periodic benefit cost	$	279		$	257		$	835		$	20,233

For the plan year ending December 31, 2018, Trustmark’s minimum required contribution to the Continuing Plan is expected to be $243 thousand; however, Management and the Board of Directors of Trustmark will monitor the Continuing Plan throughout 2018 to determine any additional funding requirements by the plan’s measurement date, which is December 31.

Supplemental Retirement Plans

Trustmark maintains a nonqualified supplemental retirement plan covering key executive officers and senior officers as well as directors who have elected to defer fees.  The plan provides for retirement and/or death benefits based on a participant’s covered salary or deferred fees.  Although plan benefits may be paid from Trustmark’s general assets, Trustmark has purchased life insurance contracts on the participants covered under the plan, which may be used to fund future benefit payments under the plan.  The measurement date for the plan is December 31.  As a result of mergers prior to 2014, Trustmark became the administrator of small nonqualified supplemental retirement plans, for which the plan benefits were frozen prior to the merger date.

The following table presents information regarding the net periodic benefit cost for Trustmark’s nonqualified supplemental retirement plans for the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Service cost	$	29	$	36	$	87	$	106
Interest cost		457		514		1,409		1,589
Amortization of prior service cost		63		63		188		188
Recognized net actuarial loss		218		214		664		651
Net periodic benefit cost	$	767	$	827	$	2,348	$	2,534

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Note 12 – Stock and Incentive Compensation Plans

Trustmark has granted stock and incentive compensation awards subject to the provisions of the Stock and Incentive Compensation Plan (the Stock Plan).  Current outstanding and future grants of stock and incentive compensation awards are subject to the provisions of the Stock Plan, which is designed to provide flexibility to Trustmark regarding its ability to motivate, attract and retain the services of key associates and directors.  The Stock Plan also allows Trustmark to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and performance units to key associates and directors.

Restricted Stock Grants

Performance Awards

Trustmark’s performance awards vest over three years and are granted to Trustmark’s executive and senior management teams.  Performance awards granted vest based on performance goals of return on average tangible equity and total shareholder return.  Performance awards are valued utilizing a Monte Carlo simulation model to estimate fair value of the awards at the grant date.  These awards are recognized using the straight-line method over the requisite service period.  These awards provide for achievement shares if performance measures exceed 100%.  The restricted share agreement provides for voting rights and dividend privileges.

Time-Vested Awards

Trustmark’s time-vested awards vest over three years and are granted to members of Trustmark’s Board of Directors as well as Trustmark’s executive and senior management teams.  Time-vested awards are valued utilizing the fair value of Trustmark’s stock at the grant date.  These awards are recognized on the straight-line method over the requisite service period.

The following tables summarize the Stock Plan activity for the periods presented:

	Three Months Ended September 30, 2018
	Performance Awards		Time-Vested Awards
Nonvested shares, beginning of period		177,695		322,528
Granted		—		1,500
Released from restriction		—		(400	)
Forfeited		—		(764	)
Nonvested shares, end of period		177,695		322,864

	Nine Months Ended September 30, 2018
	Performance Awards			Time-Vested Awards
Nonvested shares, beginning of period		213,516			320,357
Granted		51,174			118,325
Released from restriction		(55,351	)		(107,180	)
Forfeited		(31,644	)		(8,638	)
Nonvested shares, end of period		177,695			322,864

The following table presents information regarding compensation expense for awards under the Stock Plan for the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Performance awards	$	435	$	435	$	725	$	959
Time-vested awards		723		641		2,297		2,291
Total compensation expense	$	1,158	$	1,076	$	3,022	$	3,250

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Note 13 – Contingencies

Lending Related

Trustmark makes commitments to extend credit and issues standby and commercial letters of credit (letters of credit) in the normal course of business in order to fulfill the financing needs of its customers.  The carrying amount of commitments to extend credit and letters of credit approximates the fair value of such financial instruments.

Commitments to extend credit are agreements to lend money to customers pursuant to certain specified conditions.  Commitments generally have fixed expiration dates or other termination clauses.  Because many of these commitments are expected to expire without being fully drawn upon, the total commitment amounts do not necessarily represent future cash requirements.  The exposure to credit loss in the event of nonperformance by the other party to the commitments to extend credit is represented by the contract amount of those instruments.  Trustmark applies the same credit policies and standards as it does in the lending process when making these commitments.  The collateral obtained is based upon the nature of the transaction and the assessed creditworthiness of the borrower.  At September 30, 2018 and 2017, Trustmark had unused commitments to extend credit of $3.666 billion and $3.143 billion, respectively.

Letters of credit are conditional commitments issued by Trustmark to insure the performance of a customer to a third-party.  A financial standby letter of credit irrevocably obligates Trustmark to pay a third-party beneficiary when a customer fails to repay an outstanding loan or debt instrument.  A performance standby letter of credit irrevocably obligates Trustmark to pay a third-party beneficiary when a customer fails to perform some contractual, nonfinancial obligation.  When issuing letters of credit, Trustmark uses the same policies regarding credit risk and collateral, which are followed in the lending process.  At September 30, 2018 and 2017, Trustmark’s maximum exposure to credit loss in the event of nonperformance by the other party for letters of credit was $102.9 million and $105.6 million, respectively.  These amounts consist primarily of commitments with maturities of less than three years, which have an immaterial carrying value.  Trustmark holds collateral to support standby letters of credit when deemed necessary.  As of September 30, 2018 and 2017, the fair value of collateral held was $31.2 million and $30.2 million, respectively.

Legal Proceedings

Trustmark’s wholly-owned subsidiary, TNB, has been named as a defendant in three lawsuits related to the collapse of the Stanford Financial Group.  The first is a purported class action complaint that was filed on August 23, 2009 in the District Court of Harris County, Texas, by Peggy Roif Rotstain, Guthrie Abbott, Catherine Burnell, Steven Queyrouze, Jaime Alexis Arroyo Bornstein and Juan C. Olano (collectively, Class Plaintiffs), on behalf of themselves and all others similarly situated, naming TNB and four other financial institutions unaffiliated with Trustmark as defendants.  The complaint seeks to recover (i) alleged fraudulent transfers from each of the defendants in the amount of fees and other monies received by each defendant from entities controlled by R. Allen Stanford (collectively, the Stanford Financial Group) and (ii) damages allegedly attributable to alleged conspiracies by one or more of the defendants with the Stanford Financial Group to commit fraud and/or aid and abet fraud on the asserted grounds that defendants knew or should have known the Stanford Financial Group was conducting an illegal and fraudulent scheme.  Plaintiffs have demanded a jury trial.  Plaintiffs did not quantify damages.  

In November 2009, the lawsuit was removed to federal court by certain defendants and then transferred by the United States Panel on Multidistrict Litigation to federal court in the Northern District of Texas (Dallas) where multiple Stanford related matters are being consolidated for pre-trial proceedings.  In May 2010, all defendants (including TNB) filed motions to dismiss the lawsuit.  In August 2010, the court authorized and approved the formation of an Official Stanford Investors Committee (OSIC) to represent the interests of Stanford investors and, under certain circumstances, to file legal actions for the benefit of Stanford investors.  In December 2011, the OSIC filed a motion to intervene in this action.  In September 2012, the district court referred the case to a magistrate judge for hearing and determination of certain pretrial issues.  In December 2012, the court granted the OSIC’s motion to intervene, and the OSIC filed an Intervenor Complaint against one of the other defendant financial institutions.  In February 2013, the OSIC filed a second Intervenor Complaint that asserts claims against TNB and the remaining defendant financial institutions.  The OSIC seeks to recover: (i) alleged fraudulent transfers in the amount of the fees each of the defendants allegedly received from Stanford Financial Group, the profits each of the defendants allegedly made from Stanford Financial Group deposits, and other monies each of the defendants allegedly received from Stanford Financial Group; (ii) damages attributable to alleged conspiracies by each of the defendants with the Stanford Financial Group to commit fraud and/or aid and abet fraud and conversion on the asserted grounds that the defendants knew or should have known the Stanford Financial Group was conducting an illegal and fraudulent scheme; and (iii) punitive damages.  The OSIC did not quantify damages.  

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In July 2013, all defendants (including TNB) filed motions to dismiss the OSIC’s claims.  In March 2015, the court entered an order authorizing the parties to conduct discovery regarding class certification, staying all other discovery and setting a deadline for the parties to complete briefing on class certification issues.  In April 2015, the court granted in part and denied in part the defendants’ motions to dismiss the Class Plaintiffs’ claims and the OSIC’s claims.  The court dismissed all of the Class Plaintiffs’ fraudulent transfer claims and dismissed certain of the OSIC’s claims.  The court denied the motions by TNB and the other financial institution defendants to dismiss the OSIC’s constructive fraudulent transfer claims.  

On June 23, 2015, the court allowed the Class Plaintiffs to file a Second Amended Class Action Complaint (SAC), which asserted new claims against TNB and certain of the other defendants for (i) aiding, abetting and participating in a fraudulent scheme, (ii) aiding, abetting and participating in violations of the Texas Securities Act, (iii) aiding, abetting and participating in breaches of fiduciary duty, (iv) aiding, abetting and participating in conversion and (v) conspiracy.  On July 14, 2015, the defendants (including TNB) filed motions to dismiss the SAC and to reconsider the court’s prior denial to dismiss the OSIC’s constructive fraudulent transfer claims against TNB and the other financial institutions that are defendants in the action.  On July 27, 2016, the court denied the motion by TNB and the other financial institution defendants to dismiss the SAC and also denied the motion by TNB and the other financial institution defendants to reconsider the court’s prior denial to dismiss the OSIC’s constructive fraudulent transfer claims.  On August 24, 2016, TNB filed its answer to the SAC.  On October 20, 2017, the OSIC filed a motion seeking an order lifting the discovery stay and establishing a trial schedule.  On November 7, 2017, the court denied the OSIC’s motion seeking class certification and designation of class representatives and counsel, finding that common issues of fact did not predominate.  The court granted the OSIC’s motion to lift the discovery stay that it had previously ordered.

The second Stanford-related lawsuit was filed on December 14, 2009 in the District Court of Ascension Parish, Louisiana, individually by Harold Jackson, Paul Blaine, Carolyn Bass Smith, Christine Nichols, and Ronald and Ramona Hebert naming TNB (misnamed as Trust National Bank) and other individuals and entities not affiliated with Trustmark as defendants.  The complaint seeks to recover the money lost by these individual plaintiffs as a result of the collapse of  the Stanford Financial Group (in addition to other damages) under various theories and causes of action, including negligence, breach of contract, breach of fiduciary duty, negligent misrepresentation, detrimental reliance, conspiracy, and violation of Louisiana’s uniform fiduciary, securities, and racketeering laws.  The complaint does not quantify the amount of money the plaintiffs seek to recover.  In January 2010, the lawsuit was removed to federal court by certain defendants and then transferred by the United States Panel on Multidistrict Litigation to federal court in the Northern District of Texas (Dallas) where multiple Stanford related matters are being consolidated for pre-trial proceedings.  On March 29, 2010, the court stayed the case.  TNB filed a motion to lift the stay, which was denied on February 28, 2012.  In September 2012, the district court referred the case to a magistrate judge for hearing and determination of certain pretrial issues.

On April 11, 2016, Trustmark learned that a third Stanford-related lawsuit had been filed on that date in the Superior Court of Justice in Ontario, Canada, by The Toronto-Dominion Bank (“TD Bank”), naming TNB and three other financial institutions not affiliated with Trustmark as defendants.  The complaint seeks a declaration specifying the degree to which each of TNB and the other defendants are liable in respect of any loss and damage for which TD Bank is found to be liable in a litigation commenced against TD Bank brought by the Joint Liquidators of Stanford International Bank Limited in the Superior Court of Justice, Commercial List in Ontario, Canada (the “Joint Liquidators’ Action”), as well as contribution and indemnity in respect of any judgment, interest and costs TD Bank is ordered to pay in the Joint Liquidators’ Action.  To date, TNB has not been served in connection with this action.

TNB’s relationship with the Stanford Financial Group began as a result of Trustmark’s acquisition of a Houston-based bank in August 2006, and consisted of correspondent banking and other traditional banking services in the ordinary course of business.  All Stanford-related lawsuits are in pre-trial stages.

Trustmark and its subsidiaries are also parties to other lawsuits and other claims that arise in the ordinary course of business.  Some of the lawsuits assert claims related to the lending, collection, servicing, investment, trust and other business activities, and some of the lawsuits allege substantial claims for damages.

All pending legal proceedings described above are being vigorously contested.  In accordance FASB ASC Topic 450-20, “Loss Contingencies,” Trustmark will establish an accrued liability for litigation matters when those matters present loss contingencies that are both probable and reasonably estimable.  At the present time, Trustmark believes, based on its evaluation and the advice of legal counsel, that a loss in any such proceeding is not probable and a reasonable estimate cannot reasonably be made.

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Note 14 – Earnings Per Share (EPS)

The following table reflects weighted-average shares used to calculate basic and diluted EPS for the periods presented (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Basic shares		67,621		67,742		67,729		67,722
Dilutive shares		175		174		147		154
Diluted shares		67,796		67,916		67,876		67,876

Weighted-average antidilutive stock awards were excluded in determining diluted EPS. The following table reflects weighted-average antidilutive stock awards for the periods presented (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Weighted-average antidilutive stock awards		8		6		87		72

Note 15 – Statements of Cash Flows

The following table reflects specific transaction amounts for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2018		2017
Income taxes paid	$	11,629	$	1,423
Interest expense paid on deposits and borrowings		46,506		28,266
Noncash transfers from loans to other real estate		10,368		7,006
Transfer of long-term FHLB advances to short-term		—		250,038
Assets acquired in business combination		—		196,265
Liabilities acquired in business combination		—		184,949

Note 16 – Shareholders’ Equity

Regulatory Capital

Trustmark and TNB are subject to minimum risk-based capital and leverage capital requirements, as described in the section captioned “Capital Adequacy” included in Part I. Item 1. – Business of Trustmark’s 2017 Annual Report on Form 10-K, which are administered by the federal bank regulatory agencies.  These capital requirements, as defined by federal regulations, involve quantitative and qualitative measures of assets, liabilities and certain off-balance sheet instruments.  Trustmark’s and TNB’s minimum risk-based capital requirements include the phased in capital conservation buffer of 1.875% at September 30, 2018 and 1.250% at December 31, 2017.  Accumulated other comprehensive loss, net of tax, is not included in computing regulatory capital.  Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements of Trustmark and TNB and limit Trustmark’s and TNB’s ability to pay dividends.  As of September 30, 2018, Trustmark and TNB exceeded all applicable minimum capital standards.  In addition, Trustmark and TNB met applicable regulatory guidelines to be considered well-capitalized at September 30, 2018.  To be categorized in this manner, Trustmark and TNB maintained minimum common equity Tier 1 risk-based capital, Tier 1 risk-based capital, total risk-based capital and Tier 1 leverage ratios as set forth in the accompanying table, and were not subject to any written agreement, order or capital directive, or prompt corrective action directive issued by their primary federal regulators to meet and maintain a specific capital level for any capital measures.  There are no significant conditions or events that have occurred since September 30, 2018, which Management believes have affected Trustmark’s or TNB’s present classification.

42

The following table provides Trustmark’s and TNB’s actual regulatory capital amounts and ratios under regulatory capital standards in effect at September 30, 2018 and December 31, 2017 ($ in thousands):

	Actual
	Regulatory Capital					Minimum			To Be Well
	Amount		Ratio			Requirement			Capitalized
At September 30, 2018:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,302,859		12.20	%		6.375	%	n/a
Trustmark National Bank		1,344,029		12.59	%		6.375	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,362,859		12.76	%		7.875	%	n/a
Trustmark National Bank		1,344,029		12.59	%		7.875	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,453,447		13.61	%		9.875	%	n/a
Trustmark National Bank		1,434,617		13.44	%		9.875	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,362,859		10.41	%		4.00	%	n/a
Trustmark National Bank		1,344,029		10.29	%		4.00	%		5.00	%
At December 31, 2017:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,243,240		11.77	%		5.750	%	n/a
Trustmark National Bank		1,284,575		12.16	%		5.750	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,303,238		12.33	%		7.250	%	n/a
Trustmark National Bank		1,284,575		12.16	%		7.250	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,384,050		13.10	%		9.250	%	n/a
Trustmark National Bank		1,365,387		12.93	%		9.250	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,303,238		9.67	%		4.00	%	n/a
Trustmark National Bank		1,284,575		9.54	%		4.00	%		5.00	%

Stock Repurchase Program

On March 11, 2016, the Board of Directors of Trustmark authorized a stock repurchase program under which $100.0 million of Trustmark’s outstanding common stock may be acquired through March 31, 2019.  The shares may be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, depending on market conditions.  Trustmark repurchased approximately 243 thousand shares of its common stock valued at $7.9 million during the nine months ended September 30, 2018, compared to no shares repurchased during the nine months ended September 30, 2017.  

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Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss

The following tables present the net change in the components of accumulated other comprehensive loss and the related tax effects allocated to each component for the periods presented ($ in thousands).  Reclassification adjustments related to securities available for sale are included in security gains (losses), net in the accompanying consolidated statements of income.  The amortization of prior service cost, recognized net loss due to lump sum settlements, change in net actuarial loss and recognized net loss due to defined benefit plan termination on pension and other postretirement benefit plans are included in the computation of net periodic benefit cost (see Note 11 – Defined Benefit and Other Postretirement Benefits for additional details).  Reclassification adjustments related to pension and other postretirement benefit plans are included in salaries and employee benefits, defined benefit plan termination and other expense in the accompanying consolidated statements of income.  Reclassification adjustments related to the cash flow hedge derivative are included in other interest expense in the accompanying consolidated statements of income.

	Three Months Ended September 30, 2018									Three Months Ended September 30, 2017
	Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount			Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred securities:
Net unrealized holding gains (losses) arising    during the period	$	(9,660	)	$	2,414		$	(7,246	)	$	(535	)	$	204		$	(331	)
Reclassification adjustment for net (gains) losses    realized in net income		—			—			—			(14	)		6			(8	)
Change in net unrealized holding loss on    securities transferred to held to maturity		973			(243	)		730			1,130			(432	)		698
Total securities available for sale    and transferred securities		(8,687	)		2,171			(6,516	)		581			(222	)		359
Pension and other postretirement benefit plans:
Net change in prior service costs		63			(16	)		47			63			(24	)		39
Recognized net loss due to lump sum settlements		41			(10	)		31			—			—			—
Change in net actuarial loss		361			(90	)		271			356			(137	)		219
Total pension and other postretirement benefit    plans		465			(116	)		349			419			(161	)		258
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective    cash flow hedge derivatives		52			(13	)		39			53			(20	)		33
Reclassification adjustment for (gain) loss realized    in net income		(104	)		25			(79	)		55			(21	)		34
Total cash flow hedge derivatives		(52	)		12			(40	)		108			(41	)		67
Total other comprehensive income (loss)	$	(8,274	)	$	2,067		$	(6,207	)	$	1,108		$	(424	)	$	684

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	Nine Months Ended September 30, 2018									Nine Months Ended September 30, 2017
	Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount			Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred securities:
Net unrealized holding gains (losses) arising    during the period	$	(46,974	)	$	11,743		$	(35,231	)	$	6,335		$	(2,423	)	$	3,912
Reclassification adjustment for net (gains) losses    realized in net income		—			—			—			(15	)		6			(9	)
Change in net unrealized holding loss on    securities transferred to held to maturity		2,909			(727	)		2,182			3,551			(1,358	)		2,193
Total securities available for sale    and transferred securities		(44,065	)		11,016			(33,049	)		9,871			(3,775	)		6,096
Pension and other postretirement benefit plans:
Net change in prior service costs		188			(48	)		140			188			(72	)		116
Recognized net loss due to lump sum settlements		121			(29	)		92			—			—			—
Change in net actuarial loss		1,092			(273	)		819			1,923			(736	)		1,187
Recognized net loss due to defined benefit plan    termination		—			—			—			16,991			(6,499	)		10,492
Total pension and other postretirement benefit    plans		1,401			(350	)		1,051			19,102			(7,307	)		11,795
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective    cash flow hedge derivatives		611			(153	)		458			(99	)		38			(61	)
Reclassification adjustment for (gain) loss realized    in net income		(209	)		52			(157	)		232			(89	)		143
Total cash flow hedge derivatives		402			(101	)		301			133			(51	)		82
Total other comprehensive income (loss)	$	(42,262	)	$	10,565		$	(31,697	)	$	29,106		$	(11,133	)	$	17,973

The following table presents the changes in the balances of each component of accumulated other comprehensive loss for the periods presented ($ in thousands).  All amounts are presented net of tax.

	Securities Availablefor Sale and Transferred Securities			Defined Benefit Pension Items			Cash Flow Hedge Derivatives			Total
Balance at January 1, 2018	$	(26,535	)	$	(13,468	)	$	278		$	(39,725	)
Other comprehensive income (loss) before reclassification		(33,049	)		—			458			(32,591	)
Amounts reclassified from accumulated other    comprehensive loss		—			1,051			(157	)		894
Net other comprehensive income (loss)		(33,049	)		1,051			301			(31,697	)
Reclassification of certain income tax effects related to the change    in the federal statutory income tax rate under the Tax Cuts and    Jobs Act of 2017 (Tax Reform Act)		(5,694	)		(2,890	)		60			(8,524	)
Balance at September 30, 2018	$	(65,278	)	$	(15,307	)	$	639		$	(79,946	)
Balance at January 1, 2017	$	(20,800	)	$	(24,980	)	$	(18	)	$	(45,798	)
Other comprehensive income (loss) before reclassification		6,105			—			(61	)		6,044
Amounts reclassified from accumulated other    comprehensive loss		(9	)		11,795			143			11,929
Net other comprehensive income (loss)		6,096			11,795			82			17,973
Balance at September 30, 2017	$	(14,704	)	$	(13,185	)	$	64		$	(27,825	)

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Note 17 – Fair Value

Financial Instruments Measured at Fair Value

The methodologies Trustmark uses in determining the fair values are based primarily on the use of independent, market-based data to reflect a value that would be reasonably expected upon exchange of the position in an orderly transaction between market participants at the measurement date.  The predominant portion of assets that are stated at fair value are of a nature that can be valued using prices or inputs that are readily observable through a variety of independent data providers.  The providers selected by Trustmark for fair valuation data are widely recognized and accepted vendors whose evaluations support the pricing functions of financial institutions, investment and mutual funds, and portfolio managers.  Trustmark has documented and evaluated the pricing methodologies used by the vendors and maintains internal processes that regularly test valuations for anomalies.

Trustmark utilizes an independent pricing service to advise it on the carrying value of the securities available for sale portfolio.  As part of Trustmark’s procedures, the price provided from the service is evaluated for reasonableness given market changes.  When a questionable price exists, Trustmark investigates further to determine if the price is valid.  If needed, other market participants may be utilized to determine the correct fair value.  Trustmark has also reviewed and confirmed its determinations in thorough discussions with the pricing source regarding their methods of price discovery.

Mortgage loan commitments are valued based on the securities prices of similar collateral, term, rate and delivery for which the loan is eligible to deliver in place of the particular security.  Trustmark acquires a broad array of mortgage security prices that are supplied by a market data vendor, which in turn accumulates prices from a broad list of securities dealers.  Prices are processed through a mortgage pipeline management system that accumulates and segregates all loan commitment and forward-sale transactions according to the similarity of various characteristics (maturity, term, rate, and collateral).  Prices are matched to those positions that are deemed to be an eligible substitute or offset (i.e., “deliverable”) for a corresponding security observed in the market place.

Trustmark estimates fair value of the MSR through the use of prevailing market participant assumptions and market participant valuation processes.  This valuation is periodically tested and validated against other third-party firm valuations.

Trustmark obtains the fair value of interest rate swaps from a third-party pricing service that uses an industry standard discounted cash flow methodology.  In addition, credit valuation adjustments are incorporated in the fair values to account for potential nonperformance risk.  In adjusting the fair value of its interest rate swap contracts for the effect of nonperformance risk, Trustmark has considered any applicable credit enhancements such as collateral postings, thresholds, mutual puts, and guarantees.  In conjunction with the FASB’s fair value measurement guidance, Trustmark made an accounting policy election to measure the credit risk of these derivative financial instruments, which are subject to master netting agreements, on a net basis by counterparty portfolio.

Trustmark has determined that the majority of the inputs used to value its interest rate swaps offered to qualified commercial borrowers fall within Level 2 of the fair value hierarchy, while the credit valuation adjustments associated with these derivatives utilize Level 3 inputs, such as estimates of current credit spreads.  Trustmark has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its interest rate swaps and has determined that the credit valuation adjustment is not significant to the overall valuation of these derivatives.  As a result, Trustmark classifies its interest rate swap valuations in Level 2 of the fair value hierarchy.

Trustmark also utilizes exchange-traded derivative instruments such as Treasury note futures contracts and option contracts to achieve a fair value return that offsets the changes in fair value of the MSR attributable to interest rates.  Fair values of these derivative instruments are determined from quoted prices in active markets for identical assets therefore allowing them to be classified within Level 1 of the fair value hierarchy.  In addition, Trustmark utilizes derivative instruments such as interest rate lock commitments in its mortgage banking area which lack observable inputs for valuation purposes resulting in their inclusion in Level 3 of the fair value hierarchy.

At this time, Trustmark presents no fair values that are derived through internal modeling.  Should positions requiring fair valuation arise that are not relevant to existing methodologies, Trustmark will make every reasonable effort to obtain market participant assumptions, or independent evaluation.

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Financial Assets and Liabilities

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value ($ in thousands).  There were no transfers between fair value levels for the nine months ended September 30, 2018 and the year ended December 31, 2017.

	September 30, 2018
	Total		Level 1			Level 2		Level 3
U.S. Government agency obligations	$	32,371	$	—		$	32,371	$	—
Obligations of states and political subdivisions		57,264		—			57,264		—
Mortgage-backed securities		1,774,998		—			1,774,998		—
Securities available for sale		1,864,633		—			1,864,633		—
Loans held for sale		182,664		—			182,664		—
Mortgage servicing rights		101,374		—			—		101,374
Other assets - derivatives		3,287		(1,531	)		3,925		893
Other liabilities - derivatives		4,311		1,070			3,241		—

	December 31, 2017
	Total		Level 1			Level 2		Level 3
U.S. Government agency obligations	$	45,285	$	—		$	45,285	$	—
Obligations of states and political subdivisions		79,229		—			79,229		—
Mortgage-backed securities		2,114,121		—			2,114,121		—
Securities available for sale		2,238,635		—			2,238,635		—
Loans held for sale		180,512		—			180,512		—
Mortgage servicing rights		84,269		—			—		84,269
Other assets - derivatives		1,516		(1,013	)		1,629		900
Other liabilities - derivatives		2,678		616			2,062		—

The changes in Level 3 assets measured at fair value on a recurring basis for the nine months ended September 30, 2018 and 2017 are summarized as follows ($ in thousands):

	MSR			Other Assets - Derivatives
Balance, January 1, 2018	$	84,269		$	900
Total net (loss) gain included in Mortgage banking, net (1)		4,857			3,345
Additions		12,248			—
Sales		—			(3,352	)
Balance, September 30, 2018	$	101,374		$	893
The amount of total gains (losses) for the period included in earnings    that are attributable to the change in unrealized gains or    losses still held at September 30, 2018	$	13,879		$	247
Balance, January 1, 2017	$	80,239		$	1,001
Total net (loss) gain included in Mortgage banking, net (1)		(10,392	)		3,436
Additions		11,630			—
Sales		—			(3,431	)
Balance, September 30, 2017	$	81,477		$	1,006
The amount of total gains (losses) for the period included in    earnings that are attributable to the change in unrealized    gains or losses still held at September 30, 2017	$	(2,218	)	$	(1,483	)

(1) Total net (loss) gain included in Mortgage banking, net relating to the MSR includes changes in fair value due to market changes and due to run-off.

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Trustmark may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP.  Assets at September 30, 2018, which have been measured at fair value on a nonrecurring basis, include impaired LHFI.  Loans for which it is probable Trustmark will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement are considered impaired.  Specific allowances for impaired LHFI are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s original effective interest rate, the fair value of the collateral or the observable market prices of the loans.  Impaired LHFI are primarily collateral dependent loans and are assessed using a fair value approach.  Fair value estimates for collateral dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised, normally from recently received and reviewed appraisals.  Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property.  These appraisals are reviewed by Trustmark’s Appraisal Review Department to ensure they are acceptable.  Appraised values are adjusted down for costs associated with asset disposal.  At September 30, 2018, Trustmark had outstanding balances of $52.5 million in impaired LHFI that were individually evaluated for impairment and written down to the fair value of the underlying collateral less cost to sell based on the fair value of the collateral or other unobservable input compared to $48.9 million at December 31, 2017.  These individually evaluated impaired LHFI are classified as Level 3 in the fair value hierarchy.  Impaired LHFI are periodically reviewed and evaluated for additional impairment and adjusted accordingly based on the same factors identified above.

Nonfinancial Assets and Liabilities

Certain nonfinancial assets measured at fair value on a nonrecurring basis include foreclosed assets (upon initial recognition or subsequent impairment), nonfinancial assets and nonfinancial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other nonfinancial long-lived assets measured at fair value for impairment assessment.

Other real estate includes assets that have been acquired in satisfaction of debt through foreclosure and is carried at the lower of cost or estimated fair value.  Fair value is based on independent appraisals and other relevant factors.  In the determination of fair value subsequent to foreclosure, Management also considers other factors or recent developments, such as changes in market conditions from the time of valuation and anticipated sales values considering plans for disposition, which could result in an adjustment to lower the collateral value estimates indicated in the appraisals.  Periodic revaluations are classified as Level 3 in the fair value hierarchy since assumptions are used that may not be observable in the market.

Foreclosed assets of $18.4 million were remeasured during the first nine months of 2018, requiring write-downs of $1.9 million to reach their current fair values compared to $22.0 million of foreclosed assets that were remeasured during the first nine months of 2017, requiring write-downs of $2.6 million.

Fair Value of Financial Instruments

FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. A detailed description of the valuation methodologies used in estimating the fair value of financial instruments can be found in Note 18 – Fair Value included in Item 8 of Trustmark’s Annual Report on Form 10-K for the year ended December 31, 2017.

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The carrying amounts and estimated fair values of financial instruments at September 30, 2018 and December 31, 2017, are as follows ($ in thousands):

	September 30, 2018				December 31, 2017
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Level 2 Inputs:
Cash and short-term investments	$	433,471	$	433,471	$	336,383	$	336,383
Securities held to maturity		943,883		907,317		1,056,486		1,046,247
Level 3 Inputs:
Net LHFI		8,658,156		8,560,091		8,493,234		8,507,469
Net acquired loans		130,901		130,901		257,438		257,438
Financial Liabilities:
Level 2 Inputs:
Deposits		10,956,910		10,953,348		10,577,512		10,577,858
Short-term liabilities		676,888		676,888		1,440,876		1,440,876
Long-term FHLB advances		896		831		946		946
Junior subordinated debt securities		61,856		53,815		61,856		45,773

In cases where quoted market prices are not available, fair values are generally based on estimates using present value techniques.  Trustmark’s premise in present value techniques is to represent the fair values on a basis of replacement value of the existing instrument given observed market rates on the measurement date.  These techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.  In that regard, the derived fair value estimates for those assets or liabilities cannot necessarily be substantiated by comparison to independent markets and, in many cases, may not be realizable in immediate settlement of the instruments.  The estimated fair value of financial instruments with immediate and shorter-term maturities (generally 90 days or less) is assumed to be the same as the recorded book value.  All nonfinancial instruments, by definition, have been excluded from these disclosure requirements.  Accordingly, the aggregate fair value amounts presented do not represent the underlying value of Trustmark.

On January 1, 2018, Trustmark adopted ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (An Amendment of the FASB Accounting Standards Codification)”, which required the use of the exit price notion when measuring the fair value of the LHFI portfolio.  Please refer to Note 20 – Accounting Policies Recently Adopted and Pending Accounting Pronouncements for more information.

Fair Value Option

Trustmark has elected to account for its mortgage LHFS under the fair value option, with interest income on these mortgage LHFS reported in interest and fees on LHFS and LHFI.  The fair value of the mortgage LHFS is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan.  The mortgage LHFS are actively managed and monitored and certain market risks of the loans may be mitigated through the use of derivatives.  These derivative instruments are carried at fair value with changes in fair value recorded in noninterest income in mortgage banking, net.  The changes in the fair value of the LHFS are largely offset by changes in the fair value of the derivative instruments.  For the three and nine months ended September 30, 2018, a net loss of $1.3 million and a net gain of $416 thousand, respectively, was recorded in noninterest income in mortgage banking, net for changes in the fair value of the LHFS accounted for under the fair value option, compared to a net loss of $202 thousand and a net gain of $3.5 million for the three and nine months ended September 30, 2017, respectively.  Interest and fees on LHFS and LHFI for the three and nine months ended September 30, 2018 included $1.5 million and $3.8 million, respectively, of interest earned on the LHFS accounted for under the fair value option, compared to $1.4 million and $3.7 million for the three and nine months ended September 30, 2017, respectively.  Election of the fair value option allows Trustmark to reduce the accounting volatility that would otherwise result from the asymmetry created by accounting for the financial instruments at the lower of cost or fair value and the derivatives at fair value.  The fair value option election does not apply to the GNMA optional repurchase loans which do not meet the requirements under FASB ASC Topic 825 to be accounted for under the fair value option.  GNMA optional repurchase loans totaled $47.8 million and $48.2 million at September 30, 2018 and December 31, 2017, respectively, and are included in LHFS on the accompanying consolidated balance sheets.

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The following table provides information about the fair value and the contractual principal outstanding of the LHFS accounted for under the fair value option as of September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018		December 31, 2017
Fair value of LHFS	$	134,874	$	132,300
LHFS contractual principal outstanding		134,598		129,347
Fair value less unpaid principal	$	276	$	2,953

Note 18 – Derivative Financial Instruments

Derivatives Designated as Hedging Instruments

On April 4, 2013, Trustmark entered into a forward interest rate swap contract on junior subordinated debentures with a total notional amount of $60.0 million.  The interest rate swap contract was designated as a derivative instrument in a cash flow hedge under FASB ASC Topic 815, “Derivatives and Hedging,” with the objective of protecting the quarterly interest payments on Trustmark’s $60.0 million of junior subordinated debentures issued to Trustmark Preferred Capital Trust I throughout the five-year period beginning December 31, 2014 and ending December 31, 2019 from the risk of variability of those payments resulting from changes in the three-month LIBOR interest rate.  Under the swap, which became effective on December 31, 2014, Trustmark will pay a fixed interest rate of 1.66% and receive a variable interest rate based on three-month LIBOR on a total notional amount of $60.0 million, with quarterly net settlements.

No ineffectiveness related to the interest rate swap designated as a cash flow hedge was recognized in the consolidated statements of income for the nine months ended September 30, 2018 and 2017.  The accumulated net after-tax gain related to the effective cash flow hedge included in accumulated other comprehensive loss totaled $639 thousand at September 30, 2018 compared to a net after-tax gain of $278 thousand at December 31, 2017.  Amounts reported in accumulated other comprehensive loss related to this derivative are reclassified to other interest expense as interest payments are made on Trustmark’s variable rate junior subordinated debentures.  During the next twelve months, Trustmark estimates that $644 thousand will be reclassified as a decrease to other interest expense.

Derivatives not Designated as Hedging Instruments

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that economically hedges changes in the fair value of the MSR attributable to interest rates.  These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting.  The total notional amount of these derivative instruments were $252.0 million at September 30, 2018 compared to $349.0 million at December 31, 2017.  Changes in the fair value of these exchange-traded derivative instruments are recorded in noninterest income in mortgage banking, net and are offset by changes in the fair value of the MSR.  The impact of this strategy resulted in a net positive ineffectiveness of $72 thousand and a net negative ineffectiveness of $2.6 million for the three months ended September 30, 2018 and 2017, respectively. For the nine months ended September 30, 2018 and 2017, the impact was a net positive ineffectiveness of $3.5 million and $1.0 million, respectively.

As part of Trustmark’s risk management strategy in the mortgage banking area, derivative instruments such as forward sales contracts are utilized.  Trustmark’s obligations under forward sales contracts consist of commitments to deliver mortgage loans, originated and/or purchased, in the secondary market at a future date.  Changes in the fair value of these derivative instruments are recorded in noninterest income in mortgage banking, net and are offset by changes in the fair value of LHFS.  Trustmark’s off-balance sheet obligations under these derivative instruments totaled $199.5 million at September 30, 2018, with a positive valuation adjustment of $930 thousand, compared to $182.1 million, with a negative valuation adjustment of $237 thousand, at December 31, 2017.

Trustmark also utilizes derivative instruments such as interest rate lock commitments in its mortgage banking area.  Interest rate lock commitments are residential mortgage loan commitments with customers, which guarantee a specified interest rate for a specified time period.  Changes in the fair value of these derivative instruments are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of forward sales contracts.  Trustmark’s off-balance sheet obligations under these derivative instruments totaled $102.9 million at September 30, 2018, with a positive valuation adjustment of $893 thousand, compared to $83.0 million, with a positive valuation adjustment of $900 thousand, as of December 31, 2017.

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Trustmark offers certain derivatives products directly to qualified commercial lending clients seeking to manage their interest rate risk.  Trustmark economically hedges interest rate swap transactions executed with commercial lending clients by entering into offsetting interest rate swap transactions with institutional derivatives market participants.  Derivatives transactions executed as part of this program are not designated as qualifying hedging relationships and are, therefore, carried at fair value with the change in fair value recorded in noninterest income in bank card and other fees.  Because these derivatives have mirror-image contractual terms, in addition to collateral provisions which mitigate the impact of non-performance risk, the changes in fair value are expected to substantially offset.  As of September 30, 2018, Trustmark had interest rate swaps with an aggregate notional amount of $410.2 million related to this program, compared to $351.9 million as of December 31, 2017.

Credit-risk-related Contingent Features

Trustmark has agreements with its financial institution counterparties that contain provisions where if Trustmark defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Trustmark could also be declared in default on its derivatives obligations.

As of September 30, 2018, Trustmark had no termination value of interest rate swaps in a liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements compared to $80 thousand at December 31, 2017.  As of September 30, 2018, Trustmark had no posted collateral against its obligations because of negotiated thresholds and minimum transfer amounts under these agreements.  If Trustmark had breached any of these triggering provisions at September 30, 2018, it could have been required to settle its obligations under the agreements at the termination value.

Credit risk participation agreements arise when Trustmark contracts with other financial institutions, as a guarantor or beneficiary, to share credit risk associated with certain interest rate swaps.  These agreements provide for reimbursement of losses resulting from a third party default on the underlying swap.  At both September 30, 2018 and December 31, 2017, Trustmark had entered into two risk participation agreements as a beneficiary with an aggregate notional amount of $13.2 million and $13.7 million, respectively.  Trustmark had entered into seven risk participation agreements as a guarantor with an aggregate notional amount of $40.3 million at September 30, 2018 compared to six risk participation agreements as a guarantor with an aggregate notional amount of $37.1 million at December 31, 2017.  The aggregate fair values of these risk participation agreements were immaterial at September 30, 2018 and December 31, 2017.

Tabular Disclosures

The following tables disclose the fair value of derivative instruments in Trustmark’s consolidated balance sheets as of September 30, 2018 and December 31, 2017 as well as the effect of these derivative instruments on Trustmark’s results of operations for the periods presented ($ in thousands):

	September 30, 2018			December 31, 2017
Derivatives in hedging relationships
Interest rate contracts:
Interest rate swaps included in other assets	$	852		$	451
Derivatives not designated as hedging instruments
Interest rate contracts:
Futures contracts included in other assets	$	(1,569	)	$	(1,088	)
Exchange traded purchased options included in other assets		38			75
OTC written options (rate locks) included in other assets		893			900
Interest rate swaps included in other assets		3,073			1,175
Credit risk participation agreements included in other assets		—			3
Forward contracts included in other liabilities		(930	)		237
Exchange traded written options included in other liabilities		1,070			616
Interest rate swaps included in other liabilities		4,170			1,819
Credit risk participation agreements included in other liabilities		1			6

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	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Derivatives in hedging relationships
Amount of gain (loss) reclassified from accumulated other    comprehensive loss and recognized in other interest expense	$	104		$	(55	)	$	209		$	(232	)
Derivatives not designated as hedging instruments
Amount of gain (loss) recognized in mortgage banking, net	$	(1,302	)	$	(466	)	$	(9,243	)	$	688
Amount of gain (loss) recognized in bank card and other fees		(86	)		(10	)		(41	)		(63	)

The following table discloses the amount included in other comprehensive income (loss), net of tax, for derivative instruments designated as cash flow hedges for the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Derivatives in cash flow hedging relationship
Amount of gain (loss) recognized in other comprehensive    income (loss), net of tax	$	39	$	33	$	458	$	(61	)

Trustmark’s interest rate swap derivative instruments are subject to master netting agreements, and therefore, eligible for offsetting in the consolidated balance sheets.  Trustmark has elected to not offset any derivative instruments in its consolidated balance sheets.  Information about financial instruments that are eligible for offset in the consolidated balance sheets as of September 30, 2018 and December 31, 2017 is presented in the following tables ($ in thousands):

Offsetting of Derivative Assets
As of September 30, 2018
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Received			Net Amount
Derivatives	$	3,925	$	—	$	3,925	$	(84	)	$	(950	)	$	2,891

Offsetting of Derivative Liabilities
As of September 30, 2018
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Posted		Net Amount
Derivatives	$	4,170	$	—	$	4,170	$	(84	)	$	—	$	4,086

Offsetting of Derivative Assets
As of December 31, 2017
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Received		Net Amount
Derivatives	$	1,626	$	—	$	1,626	$	(311	)	$	—	$	1,315

Offsetting of Derivative Liabilities
As of December 31, 2017
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Posted			Net Amount
Derivatives	$	1,819	$	—	$	1,819	$	(311	)	$	(100	)	$	1,408

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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 20 – Segment Information included in Part II. Item 8. – Financial Statements and Supplementary Data, of Trustmark’s 2017 Annual Report on Form 10-K.  There have been no significant changes in Trustmark’s operating segments during the periods presented.

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.

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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,
	2018		2017		2018		2017
General Banking
Net interest income	$	106,784	$	103,408	$	313,299	$	302,613
Provision for loan losses, net		8,206		2,019		15,043		3,533
Noninterest income		28,557		26,570		87,587		88,830
Noninterest expense		89,889		88,814		267,462		284,420
Income before income taxes		37,246		39,145		118,381		103,490
Income taxes		3,536		7,130		13,430		19,772
General banking net income	$	33,710	$	32,015	$	104,951	$	83,718
Selected Financial Information
Total assets	$	13,364,636	$	13,811,335	$	13,364,636	$	13,811,335
Depreciation and amortization	$	9,759	$	9,863	$	28,959	$	28,196
Wealth Management
Net interest income	$	134	$	434	$	771	$	718
Noninterest income		7,769		7,512		22,768		22,513
Noninterest expense		7,194		6,791		19,996		20,361
Income before income taxes		709		1,155		3,543		2,870
Income taxes		177		441		886		1,098
Wealth management net income	$	532	$	714	$	2,657	$	1,772
Selected Financial Information
Total assets	$	9,411	$	6,635	$	9,411	$	6,635
Depreciation and amortization	$	64	$	30	$	116	$	104
Insurance
Net interest income	$	65	$	70	$	170	$	175
Noninterest income		10,767		10,398		30,922		29,360
Noninterest expense		8,140		7,481		24,030		22,437
Income before income taxes		2,692		2,987		7,062		7,098
Income taxes		681		1,137		1,774		2,726
Insurance net income	$	2,011	$	1,850	$	5,288	$	4,372
Selected Financial Information
Total assets	$	65,765	$	66,685	$	65,765	$	66,685
Depreciation and amortization	$	155	$	159	$	437	$	481
Consolidated
Net interest income	$	106,983	$	103,912	$	314,240	$	303,506
Provision for loan losses, net		8,206		2,019		15,043		3,533
Noninterest income		47,093		44,480		141,277		140,703
Noninterest expense		105,223		103,086		311,488		327,218
Income before income taxes		40,647		43,287		128,986		113,458
Income taxes		4,394		8,708		16,090		23,596
Consolidated net income	$	36,253	$	34,579	$	112,896	$	89,862
Selected Financial Information
Total assets	$	13,439,812	$	13,884,655	$	13,439,812	$	13,884,655
Depreciation and amortization	$	9,978	$	10,052	$	29,512	$	28,781

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Note 20 – Accounting Policies Recently Adopted and Pending Accounting Pronouncements

Accounting Policies Recently Adopted

Except for the changes detailed below, Trustmark has consistently applied its accounting policies to all periods presented in the accompanying consolidated financial statements.

ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.”  Issued in February 2018, ASU 2018-02 seeks to help entities reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Reform Act, enacted on December 22, 2017.  ASU 2018-02 was issued in response to concerns regarding current guidance in GAAP that requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date, even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income, rather than net income, and as a result the stranded tax effects would not reflect the appropriate tax rate.  The amendments of ASU 2018-02 allow an entity to make a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects, which is the difference between the historical corporate income tax rate of 35.0% and the newly enacted corporate income tax rate of 21.0%.  ASU 2018-02 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2018; however, public business entities are allowed to early adopt the amendments of ASU 2018-02 in any interim period for which the financial statements have not yet been issued.  The amendments of ASU 2018-02 may be applied either at the beginning of the period (annual or interim) of adoption or retrospectively to each of the period(s) in which the effect of the change in the U.S. federal corporate tax rate in the Tax Reform Act is recognized.  As a result of the re-measurement of Trustmark’s deferred tax assets following the enactment of the Tax Reform Act, accumulated other comprehensive loss included $8.5 million of stranded tax effects at December 31, 2017.  Trustmark early adopted the amendments of 2018-02 during the first quarter of 2018 and elected to reclassify the stranded tax effects from accumulated other comprehensive loss to retained earnings at the beginning of the period of adoption.  The reclassification of the stranded tax effects resulted in an $8.5 million increase in accumulated other comprehensive loss, net of tax and a corresponding increase in retained earnings.

ASU 2017-07, “Compensation-Retirement Benefits (Topic 715)-Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.”  Issued in March 2017, ASU 2017-07 is designed to improve guidance related to the presentation of defined benefit costs in the income statement.  In particular, ASU No. 2017-07 requires that an employer report the service cost component in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period.  The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented.  If a separate line item or items are used to present the other components of net benefit cost, then that line item or items must be appropriately described.  However, if a separate line item or items are not used, then the line item(s) used in the income statement to present the other components of net benefit cost must be disclosed.  Additionally, ASU 2017-07 allows only the service cost component to be eligible for capitalization, when applicable.  The amendments of ASU 2017-07 must be applied retrospectively for the presentation of the service cost component and the other components of net periodic benefit cost in the income statement and prospectively, on or after the adoption date, for capitalization of the service cost component in assets.  Management evaluated the amendments of this ASU and determined that the amendments of ASU 2017-07 would require a reclassification of the net periodic benefit cost, with the exception of the service cost component, from salaries and employee benefits to other expense on the consolidated statements of income for each period presented, which is not considered material to Trustmark’s consolidated financial statements.  Trustmark adopted the amendments of ASU 2017-07 effective January 1, 2018.  Trustmark elected the available practical expedient which allows Trustmark to use the amounts disclosed in its pension and other postretirement benefits footnote for the prior comparative periods for applying the retrospective presentation requirements.  As a result of the adoption of ASU 2017-07, Trustmark reclassified $885 thousand and $2.7 million of the net periodic benefit cost from salaries and employee benefits to other expense in the accompanying consolidated statements of income for the three and nine months ended September 30, 2018, respectively, compared to $966 thousand and $4.8 million for the three and nine months ended September 30, 2017, respectively.

ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (An Amendment of the FASB Accounting Standards Codification).”  Issued in January 2016, ASU 2016-01 is intended to enhance the reporting model for financial instruments to provide users of financial statements with improved decision-making information.  The amendments of ASU 2016-01 include: (i) requiring equity investments, except those accounted for under the equity method of accounting or those that result in the consolidation of an investee, to be measured at fair value with changes in fair value recognized in net income; (ii) requiring a qualitative assessment to identify impairment of equity investments without readily determinable fair values; (iii) eliminating the requirement to disclose the method and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet; (iv) requiring the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requiring an entity that has elected the fair value option

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to measure the fair value of a liability to present separately in other comprehensive income the portion of the change in the fair value resulting from a change in the instrument-specific credit risk; (vi) requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets.  The amendments of ASU 2016-01 became effective for Trustmark on January 1, 2018.  Trustmark’s investments in member bank stock, which are equity securities that do not have readily determinable fair values, are not within the scope of ASU 2016-01.  See Note 1 – Significant Accounting Policies, “Federal Home Loan Bank (FHLB) and Federal Reserve Bank of Atlanta Stock” included in Item 8 of Trustmark’s 2017 Annual Report on Form 10-K for information regarding Trustmark’s investment in member bank stock.  Adoption of the amendments of ASU 2016-01 resulted in changes to Trustmark’s fair value related disclosures, specifically amendments (iii) which eliminated the requirement to disclose the method and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet and (iv) which required the use of the exit price notion when measuring the fair value of the LHFI portfolio.  Changes to Trustmark’s fair value related disclosures are presented in Note 17 – Fair Value of this report.  The adoption of ASU 2016-01 did not have a material impact on Trustmark’s consolidated financial statements.

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” Issued in May 2014, ASU 2014-09 will add FASB ASC Topic 606, “Revenue from Contracts with Customers,” and will supersede revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” as well as certain cost guidance in FASB ASC Topic 605-35, “Revenue Recognition – Construction-Type and Production-Type Contracts.”  ASU 2014-09 provides a framework for revenue recognition that replaces the existing industry and transaction specific requirements under the existing standards.  ASU 2014-09 requires an entity to apply a five-step model to determine when to recognize revenue and at what amount.  The model specifies that revenue should be recognized when (or as) an entity transfers control of goods or services to a customer at the amount in which the entity expects to be entitled.  Depending on whether certain criteria are met, revenue should be recognized either over time, in a manner that depicts the entity’s performance, or at a point in time, when control of the goods or services are transferred to the customer.  ASU 2014-09 provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation.  In addition, the existing requirements for the recognition of a gain or loss on the transfer of non-financial assets that are not in a contract with a customer are amended to be consistent with the guidance on recognition and measurement in ASU 2014-09.  The amendments of ASU 2014-09 may be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application.  If the transition method of application is elected, the entity should also provide the additional disclosures in reporting periods that include the date of initial application of (1) the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and (2) an explanation of the reasons for significant changes.  The amendments of ASU 2014-09 and all subsequently issued ASUs, which provided additional guidance and clarifications to various aspects of FASB ASC Topic 606, became effective for Trustmark on January 1, 2018.  Trustmark elected to adopt these amendments using the modified retrospective method (cumulative effect method) of application for only those contracts not completed as of the date of adoption; therefore, comparative information has not been adjusted and continues to be reported under legacy GAAP.  Trustmark’s contracts with customers are primarily for a term of one year or less and substantially all of Trustmark’s contracts were completed as of January 1, 2018.  Management determined that approximately 23% of the revenues earned by Trustmark are within the scope of ASU 2014-09, and, for most of the revenue streams within the scope of ASU 2014-09, the amendments do not change the timing or amount of revenue recognized.  No cumulative adjustment was recorded as a result of the adoption of ASU 2014-09.  Disclosures required by the amendments of ASU 2014-09 are presented in Note 10 – Revenue from Contracts with Customers of this report.  The adoption of ASU 2014-09 did not have a material impact on Trustmark’s consolidated financial statements.  Changes in Trustmark’s accounting policies as a result of adopting the amendments of ASU 2014-09 included the following:  

Bank Card and Other Fees

Previously, Trustmark recognized interchange fee revenue from point of sale transactions in full as noninterest income in bank card and other fees and recorded a separate expense as noninterest expense in other expense for the amounts payable to the payment network.  Under the guidelines of FASB ASC Topic 606, Trustmark records the amounts payable to the payment network for point of sale transactions as noninterest income in bank card and other fees and, therefore, reports revenue from interchange fee contracts net of the considered for which Trustmark is not entitled.

Insurance Commissions

Commissions subject to clawback provisions are considered variable consideration subject to variable constraint under FASB ASC Topic 606.  Previously, FBBI recognized revenue from insurance contracts in full when the commissions were invoiced or received and recorded a negative commission amount at the time the commissions were paid back to the insurance provider as a result of a

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policy cancellation or lapse.  No allowance for doubtful accounts was previously recorded related to the commission revenue subject to clawback provisions.  As a result of the adoption of FASB ASC Topic 606, FBBI calculates a separate weighted-average percentage (returned commissions percentage) based on actual cancellations over the previous three years for commercial lines, bonds, and personal lines.  FBBI applies the respective returned commissions percentage to the commission revenue earned related to insurance contracts within these three lines each month to calculate the estimated returned commissions amount, which represents the variable consideration subject to variable constraint.  Revenue from insurance contracts is reported net of the estimated returned commissions amount (contra-revenue) and a corresponding liability is recorded in other liabilities.  FBBI performs an analysis of the returned commissions reserve quarterly and adjusts the reserve balance based on all available information including actual cancellations and the remaining term of the contract.  The returned commissions percentage is updated annually.  

Wealth Management

A portion of the revenue received by Trustmark from investment services and trust tax contracts are payable to third-parties for related services rendered and represents consideration for which Trustmark is not entitled under FASB ASC Topic 606.  Previously, Trustmark recognized revenue from investment services and trust tax contracts in full as noninterest income in wealth management and recorded a separate expense for services rendered related to these contracts as noninterest expense in other expense.  Under FASB ASC Topic 606, Trustmark records expenses for services rendered related to these contracts as noninterest income in wealth management (contra-revenue) and, as a result, revenue from wealth management contracts is reported net of the amount for which Trustmark is not entitled.

Pending Accounting Pronouncements

ASU 2018-15, “Intangibles-Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).”  Issued in August 2018, ASU 2018-15 aims to reduce complexity in the accounting for costs of implementing a cloud computing service arrangement.  ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license).  The amendments of ASU 2018-15 require an entity to follow the guidance in FASB ASC Subtopic 350-40, “Intangibles-Goodwill and Other-Internal-Use Software,” in order to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense.  The amendments of ASU 2018-15 also require an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement (i.e. the noncancellable period of the arrangement plus periods covered by (1) an option to extend the arrangement if the entity is reasonably certain to exercise that option, (2) an option to terminate the arrangement if the entity is reasonably certain not to exercise the option, and (3) an option to extend (or not to terminate) the arrangement in which exercise of the option is in the control of the vendor).  ASU 2018-15 also requires an entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement, and to classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element.  ASU 2018-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Trustmark does not currently have any material amount of implementation costs related to hosting arrangements that are service contracts and is not expected to have a material impact to Trustmark’s consolidated financial statements; however, Management will continue to evaluate the impact of this ASU on future hosting arrangements as well as Trustmark’s consolidated financial statements through its effective date.

ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.”  Issued in August 2018, ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.  The amendments in ASU 2018-14 remove certain disclosure requirements that are no longer considered cost beneficial, clarify the specific requirements of disclosures and add disclosure requirements identified as relevant.  The amendments of ASU 2018-14 become effective for fiscal years beginning after December 15, 2020.  Trustmark plans to adopt these amendments during the first quarter of 2021.  Management is currently assessing all the potential impacts of the amendments in ASU 2018-14 on Trustmark’s consolidated financial statements; however, the adoption of ASU 2018-14 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.”  Issued in August 2018, the amendments in this ASU remove disclosure requirements in FASB ASC Topic 820 related to (1) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; (3) the valuation processes for Level 3 fair value measurements; and (4) for non-public entities, the changes in unrealized gains and losses for the period included in earnings for recurring Level 3 fair value measurements held at the end of the reporting period. The ASU also modifies disclosure requirements such that (1) in place of a rollforward for Level 3 fair

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value measurements, a non-public entity is required to disclose transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities; (2) for investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date that restrictions from redemption might lapse, only if the investee has communicated the timing to the entity or announced the timing publicly; and (3) it is clear that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date.  Additionally, this ASU adds disclosure requirements for public entities about (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.  The amendments of ASU 2018-13 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Trustmark plans to adopt ASU 2018-13 during the first quarter of 2020.  Management is currently assessing all the potential impacts of the amendments in ASU 2018-13 on Trustmark’s consolidated financial statements; however, the adoption of ASU 2018-13 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.”  Issued in August 2017, ASU 2017-12 aims to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements.  The amendments in ASU 2017-12 aim to better align an entity’s risk management activities and financial reporting for hedging relationships by expanding and refining hedge accounting for both non-financial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements.  The amendments in ASU 2017-12 (i) permit hedge accounting for risk components in hedging relationships involving nonfinancial risk and interest rate risk; (ii) change the guidance for designating fair value hedges of interest rate risk and for measuring the change in fair value of the hedged item in fair value hedges of interest rate risk; (iii) continue to allow an entity to exclude option premiums and forward points from the assessment of hedge effectiveness; and (iv) permit an entity to exclude the portion of the change in fair value of a currency swap that is attributable to a cross-country basis spread from the assessment of hedge effectiveness.  The amendments of ASU 2017-12 also include targeted improvements intended to simplify the application of hedge accounting.  The amendments of ASU 2017-12 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. All transition requirements and elections must be applied to all hedging relationships existing at the date of adoption.  Trustmark plans to adopt ASU 2017-12 during the first quarter of 2019 using the required modified retrospective transition method.  Trustmark will recognize the cumulative effect of the change, if any, in the beginning balance of each affected component of equity as of January 1, 2019.  Management is currently assessing all the potential impacts of the amendments in ASU 2017-12 on Trustmark’s consolidated financial statements; however, the adoption of ASU 2017-12 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.”  Issued in March 2017, ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium.  In particular, the amendments in ASU 2017-08 require the premium to be amortized to the earliest call date. The amendments do not, however, require an accounting change for securities held at a discount; instead, the discount continues to be amortized to maturity.  Notably, the amendments in this ASU more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities.  Securities within the scope of ASU 2017-08 are purchased debt securities that have explicit, noncontingent call features that are callable at fixed prices and on preset dates.  The amendments of ASU 2017-08 become effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018.  Trustmark plans to adopt these amendments during the first quarter of 2019.  As of September 30, 2018, Trustmark’s total unamortized premium for purchased debt securities within the scope of ASU 2017-08 was immaterial.  Management will continue to evaluate the impact this ASU will have on Trustmark’s consolidated financial statements through its effective date; however, the adoption of ASU 2017-08 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.”  Issued in January 2017, ASU 2017-04 simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test.  Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill.  In computing the implied fair value of goodwill under Step 2, an entity, prior to the amendments in ASU 2017-04, had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, in accordance with the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination.  However, under the amendments in ASU 2017-04, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.  Additionally, ASU 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test.  ASU 2017-04 is effective prospectively for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019.  Based on Trustmark’s annual goodwill impairment test performed as of October 1, 2017, the fair value of its reporting units exceeded

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the carrying value and, therefore, the related goodwill was not impaired.  Management will continue to evaluate the impact this ASU will have on Trustmark’s consolidated financial statements through its effective date; however, the adoption of ASU 2017-04 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”  Issued in June 2016, ASU 2016-13 will add FASB ASC Topic 326, “Financial Instruments-Credit Losses” and finalizes amendments to FASB ASC Subtopic 825-15, “Financial Instruments-Credit Losses.”  The amendments of ASU 2016-13 are intended to provide financial statement users with more decision-useful information related to expected credit losses on financial instruments and other commitments to extend credit by replacing the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates.  The amendments of ASU 2016-13 eliminate the probable initial recognition threshold and, in turn, reflect an entity’s current estimate of all expected credit losses.  ASU 2016-13 does not specify the method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate.  Additionally, the amendments of ASU 2016-13 require that credit losses on available for sale debt securities be presented as an allowance rather than as a write-down.  The amendments of ASU 2016-13 are effective for interim and annual periods beginning after December 15, 2019.  Earlier application is permitted for interim and annual periods beginning after December 15, 2018.  Trustmark has established a Current Expected Credit Loss (CECL) Steering Committee and a CECL Working Group which include the appropriate members of Management to evaluate the impact this ASU will have on Trustmark’s financial position, results of operations and financial statement disclosures and determine the most appropriate method of implementing the amendments in this ASU as well as any resources needed to implement the amendments.  Trustmark intends to adopt the amendments of ASU 2016-13 during the first quarter of 2020.  Trustmark selected a third-party vendor to provide allowance for loan loss software as well as advisory services in developing a new methodology that would be compliant with amendments of ASU 2016-13, and is working with the approved third-party vendor to develop the CECL model and evaluate the impact to Trustmark.  Trustmark is working with the third-party vendor on developing various modeling techniques and methodologies, which Management will review to determine the most appropriate model for Trustmark.  Trustmark is on schedule to fully comply with all CECL requirements within its internally established timeframe for implementation.  Management will continue to evaluate the impact this ASU will have on Trustmark’s consolidated financial statements through its effective date.

ASU 2016-02, “Leases (Topic 842).” Issued in February 2016, ASU 2016-02 was issued by the FASB to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements.  ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, the ASU contains some targeted improvements that are intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014.  The amendments of ASU 2016-02 are effective for interim and annual periods beginning after December 15, 2018.  In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842: Leases,” which provides corrections or improvements to a number of areas within Topic 842 and has the same transition guidance and effective date as ASU 2016-02. The FASB also issued ASU 2018-11, “Leases (Topic 842)-Targeted Improvements”, in July 2018, which provides entities with an additional and optional transition method to adopt the new lease standard and, for lessors only, a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component.  The amendments in ASU 2018-11 allow an entity the option to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption as opposed to at the beginning of the earliest period presented in the financial statements.  The amendments of ASU 2018-11 have the same effective date as ASU 2016-02.  Trustmark plans to adopt the amendments of ASU 2016-02 beginning in the first quarter of 2019. At adoption, Trustmark will recognize a lease asset and a corresponding lease liability on its consolidated balance sheet for its total lease obligation measured on a discounted basis.  As of December 31, 2017, all leases in which Trustmark was the lessee were classified as operating leases and the total outstanding lease obligation was $67.9 million, or 0.5% of total assets.  Management is currently evaluating these lease obligations as potential lease assets and liabilities as defined by ASU 2016-02.  Trustmark does not anticipant any material impact to its consolidated statements of income as a result of the adoption of this ASU.  Trustmark has an immaterial amount of leases in which it is the lessor.  Based on Management’s evaluation to date, Trustmark does not expect the amendments of ASU 2016-02 to have any material impact to these leases or the related income.  Trustmark has obtained a third-party software application which will provide lease contract maintenance and lease accounting under the guidelines of FASB ASC Topic 842.  Management is currently in the process of loading all existing lease contracts into the software application.  Management will continue to evaluate the impact this ASU will have on Trustmark’s consolidated financial statements; however, the adoption of ASU 2016-02 is not expected to have a material impact on Trustmark’s consolidated financial statements.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following provides a narrative discussion and analysis of Trustmark Corporation’s (Trustmark) financial condition and results of operations.  This discussion should be read in conjunction with the unaudited consolidated financial statements and the supplemental financial data included in Part I. Item 1. – Financial Statements of this report.

Description of Business

Trustmark, a Mississippi business corporation incorporated in 1968, is a bank holding company headquartered in Jackson, Mississippi.  Trustmark’s principal subsidiary is Trustmark National Bank (TNB), initially chartered by the State of Mississippi in 1889.  At September 30, 2018, TNB had total assets of $13.437 billion, which represented approximately 99.98% of the consolidated assets of Trustmark.

Through TNB and its other subsidiaries, Trustmark operates as a financial services organization providing banking and other financial solutions through 198 offices and 2,889 full-time equivalent associates (measured at September 30, 2018) located in the states of Alabama, Florida (primarily in the northwest or “Panhandle” region of that state, which is referred to herein as Trustmark’s Florida market), Mississippi, Tennessee (in the Memphis and Northern Mississippi regions, which are collectively referred to herein as Trustmark’s Tennessee market), and Texas (primarily in Houston, which is referred to herein as Trustmark’s Texas market).  Trustmark’s operations are managed along three operating segments: General Banking Division, Wealth Management Division and Insurance Division.  For a complete overview of Trustmark’s business, see the section captioned “The Corporation” included in Part I. Item 1. – Business of Trustmark’s 2017 Annual Report on Form 10-K.

Executive Overview

Trustmark continued to achieve solid financial results with total revenue of $154.1 million and $455.5 million for the three and nine months ended September 30, 2018, an increase of 3.8% and 2.5%, respectively, when compared to the same time periods in 2017.  Trustmark continued to focus on its strategic initiatives of balance sheet optimization, capital deployment through additional share repurchases and disciplined expense management.  Credit quality remained strong and continued to be an important contributor to Trustmark’s financial success.  Trustmark is committed to investments to support profitable revenue growth as well as reengineering and efficiency opportunities to enhance shareholder value.  Trustmark’s capital position remained solid, reflecting the consistent profitability of its diversified financial services businesses.  Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share.  The dividend is payable December 15, 2018, to shareholders of record on December 1, 2018.

On October 10, 2018, Hurricane Michael struck the Florida Panhandle causing significant damages.  As of September 30, 2018, Trustmark had 1,787 loans with a balance of $239.7 million and exposure of $282.1 million in the Federal Emergency Management Agency (FEMA) designated disaster areas which includes 12 counties in Florida and 20 counties in Georgia.  Immediately following the storm, Trustmark initiated a process to identify all customers in the FEMA disaster areas.  Efforts are now ongoing to contact those borrowers to offer assistance as well as to establish reasonable estimates of uninsured damage and to adequately assess potential risk to Trustmark.  Management continues to evaluate the impact of Hurricane Michael and is unable to provide a reasonable estimate of the financial impact on Trustmark’s consolidated financial statements at this time.

Recent Economic and Industry Developments

The economy continued to show moderate signs of improvement during the first nine months of 2018; however, economic concerns remain as a result of the cumulative weight of volatility in crude oil prices and uncertain growth prospects in Russia and other emerging markets, combined with uncertainty regarding the impact of further tightening of the monetary policy by the Board of Governors of the Federal Reserve System (FRB), the consequences of the decision of the United Kingdom to exit the European Union, and the potential impact on the economy of the current presidential administration’s policies.  Doubts surrounding the near-term direction of global markets, and the potential impact of these trends on the United States economy, are expected to persist for the near term.  While Trustmark’s customer base is wholly domestic, international economic conditions affect domestic conditions, and thus may have an impact upon Trustmark’s financial condition or results of operations.

In the September 2018 “Summary of Commentary on Current Economic Conditions by Federal Reserve Districts,” the twelve Federal Reserve Districts’ reports suggested national economic activity continued to expand at a moderate pace during the reporting period.  Reports by the twelve Federal Reserve Districts noted consumer spending grew at a modest pace, tourism and transportation activities expanded, moderate growth in manufacturing activity, growth in lending activity and modest to moderate growth in employment and wages.  Reports by the twelve Federal Reserve Districts also suggested that various sectors, including manufacturing, agriculture and transportation, have concerns regarding the impact of newly imposed and proposed tariffs, higher input prices (e.g. fuel, freight,

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construction materials and metals) and supply disruptions and tight labor markets; however, businesses remained optimistic regarding the near-term outlook.  The Federal Reserve’s Sixth District, Atlanta (which includes Trustmark’s Alabama, Florida and Mississippi market regions), reported that economic activity expanded at a moderate pace with optimistic outlooks for steady growth in the near-term, labor markets remained tight and wage growth remained steady, retail sales improved, nonresidential construction activity was flat while residential construction activity increased and manufacturing activity improved.  The Federal Reserve’s Eighth District, St. Louis (which includes Trustmark’s Tennessee market region), reported that economic conditions improved slightly, labor markets remained tight with modest growth in wages, consumer spending improved slightly, modest improvements in construction activity and banking conditions remained stable with little change in loan demand.  The Federal Reserve’s Eleventh District, Dallas (which includes Trustmark’s Texas market region), reported economic activity expanded at a solid pace, noting increased manufacturing activity, improvements in retail sales and broad-based expansion in the nonfinancial services sectors.  The Federal Reserve’s Eleventh District also reported increased demand for loans, with stronger growth seen in commercial and residential real estate loans and commercial and industrial loans, increased loan pricing and higher deposit volumes; however, while outlooks remained optimistic, concerns regarding regulatory compliance, tariffs and flattening of the yield curve were noted.

During September 2018, the FRB increased the target range for the federal funds rate for the third time in 2018 as anticipated.  The FRB also continues to reduce the size of its balance sheet.  It is not possible to predict the impact, if any, on market interest rates (or on markets generally) of efforts by the FRB to continue to reduce the size of its balance sheet.  Notwithstanding recent increases in the target rate for federal funds by the FRB, interest rates remain in a historically low range, and this continues to place pressure on net interest margins for Trustmark (as well as its competitors).  The FRB has indicated that it intends to continue to raise rates in 2018.  Further increases in interest rates will place competitive pressures on the deposit cost of funds.  It is not possible to predict the pace and magnitude of rising interest rates, or the impact rising rates will have on Trustmark’s results of operations.

Financial Highlights

Trustmark reported net income of $36.3 million, or basic and diluted earnings per share (EPS) of $0.54, in the third quarter of 2018, compared to $34.6 million, or basic and diluted EPS of $0.51, in the third quarter of 2017.  The increase in net income when the third quarter of 2018 is compared to the same time period in 2017 was principally due to the increase in total revenue and a decrease in income taxes, primarily due to the decrease in the statutory corporate tax rate as a result of the enactment of the Tax Cuts and Jobs Act of 2017 (Tax Reform Act), which were largely offset by increases in the total provision for loan losses, net and noninterest expense.  These factors are discussed in greater detail below.  Trustmark’s reported performance during the quarter ended September 30, 2018 produced a return on average tangible equity of 12.26%, a return on average assets of 1.07%, an average equity to average assets ratio of 11.86% and a dividend payout ratio of 42.59%, compared to a return on average tangible equity of 11.95%, a return on average assets of 0.99%, an average equity to average assets ratio of 11.36% and a dividend payout ratio of 45.10% during the quarter ended September 30, 2017.

Trustmark reported net income of $112.9 million, or basic and diluted EPS of $1.67, for the first nine months of 2018, compared to $89.9 million, or basic and diluted EPS of $1.33 and $1.32, respectively, for the first nine months of 2017.  The increase in net income when the first nine months of 2018 is compared to the same time period in 2017 was principally due to the decrease in noninterest expense, primarily due to non-routine expenses related to the defined benefit pension plan termination and the Reliance merger incurred during the second quarter of 2017, an increase in total revenue and a decrease in income taxes, partially offset by an increase in the total provision for loan losses, net.  These factors are discussed in greater detail below.  Trustmark’s performance during the first nine months of 2018 produced a return on average tangible equity of 13.02%, a return on average assets of 1.12%, an average equity to average assets ratio of 11.72% and a dividend payout ratio of 41.32%, compared to a return on average tangible equity of 10.68%, a return on average assets of 0.88%, an average equity to average assets ratio of 11.37% and a dividend payout ratio of 51.88% during the first nine months of 2017.

Total revenue, which is defined as net interest income plus noninterest income, for the three and nine months ended September 30, 2018 was $154.1 million and $455.5 million, respectively, an increase of $5.7 million, or 3.8%, and $11.3 million, or 2.5%, respectively, when compared to the same time periods in 2017.  The increase in total revenue for the three and nine months ended September 30, 2018 was principally the result of increases in interest and fees on LHFS and LHFI and mortgage banking, net and a decrease in other interest expense, partially offset by an increase in interest on deposits and declines in interest on securities and other noninterest income.  

Interest and fees on LHFS and LHFI for the three and nine months ended September 30, 2018 increased $13.9 million, or 15.6%, and $37.9 million, or 14.9%, respectively, compared to the same time periods in 2017, primarily due to an increase in the LHFI portfolio as well as higher yields on LHFI.  LHFI totaled $8.747 billion at September 30, 2018, an increase of $339.7 million, or 4.0%, when compared to September 30, 2017, principally due to net growth in loans secured by real estate in Trustmark’s Alabama, Mississippi and Florida market regions.  Mortgage banking, net for the three and nine months ended September 30, 2018 increased $4.2 million, or 95.4%, and $5.3 million, or 22.6%, respectively, compared to the same time periods in 2017, principally due to increases in the net

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positive hedge ineffectiveness and gain on sales of loans, net.  Other interest expense for the three and nine months ended September 30, 2018 decreased $3.1 million, or 67.5%, and $4.2 million, or 39.2%, respectively, when compared to the same time periods in 2017, principally due to a decline in interest on Federal Home Loan Bank (FHLB) advances as a result of the decrease in the amount of outstanding short-term FHLB advances with the FHLB of Dallas.  Interest expense on deposits for the three and nine months ended September 30, 2018 increased $8.6 million and $21.2 million, respectively, when compared to the same time periods in 2017, principally due to rising interest rates in general, accompanied by increases in average balances of all categories of interest-bearing deposits.  Interest on securities for the three and nine months ended September 30, 2018 declined $3.3 million, or 16.5%, and $7.9 million, or 13.1%, respectively, when compared to the same time periods in 2017, primarily as a result of run-off of maturing investment securities.  Other noninterest income for the three and nine months ended September 30, 2018 decreased $2.4 million, or 63.7%, and $6.4 million, or 57.1%, respectively, when compared to the same time periods in 2017, principally due to $2.7 million of nontaxable proceeds related to bank-owned life insurance received during the third quarter of 2017 and $4.9 million in nontaxable proceeds related to life insurance acquired in a previous acquisition received during the second quarter of 2017.

Trustmark’s provision for loan losses, LHFI for the three and nine months ended September 30, 2018 totaled $8.7 million and $15.8 million, respectively, an increase of $5.0 million and $6.4 million, respectively, when compared to the provision for loan losses, LHFI for the three and nine months ended September 30, 2017.  Please see the section captioned “Provision for Loan Losses, LHFI,” for additional information regarding the provision for loan losses, LHFI.  The provision for loan losses, acquired loans for the three and nine months ended September 30, 2018 totaled a negative $467 thousand and $758 thousand, respectively, a decrease of $1.2 million, or 71.7%, and $5.1 million, or 87.0%, respectively, when compared to a negative provision of $1.7 million and $5.8 million for the three and nine months ended September 30, 2017, respectively.  Please see the section captioned “Provision for Loan Losses, Acquired Loans,” for additional information regarding the provision for loan losses, acquired loans.  In total, the provision for loan losses, net was $8.2 million and $15.0 million for the three and nine months ended September 30, 2018, respectively, an increase of $6.2 million and $11.5 million, respectively, when compared to the same time periods in 2017.

Noninterest expense for the three and nine months ended September 30, 2018 totaled $105.2 million and $311.5 million, respectively, an increase of $2.1 million, or 2.1%, and a decrease of $15.7 million, or 4.8%, respectively, when compared to the same time periods in 2017.  The increase in noninterest expense for the three months ended September 30, 2018 when compared to the same time period in 2017 was principally due to increases in salaries and employee benefits and services and fees partially offset by a decrease in other expense.  The decrease in noninterest expense when the first nine months of 2018 is compared to the same time period in 2017 was principally due to non-routine transaction expenses incurred during the second quarter of 2017 as well as a decline in other expense partially offset by increases in salaries and employee benefits and services and fees.  During the second quarter of 2017, Trustmark incurred non-routine transaction expenses of $17.6 million related to the termination of the defined benefit pension plan and $3.2 million related to the completion of the Reliance merger.

At September 30, 2018, nonperforming assets, excluding acquired loans, totaled $104.3 million, a decrease of $6.5 million, or 5.9%, compared to December 31, 2017, primarily due to the decline in other real estate.  Nonaccrual LHFI totaled $67.8 million at September 30, 2018, representing an increase of $261 thousand, or 0.4%, relative to December 31, 2017.  Other real estate declined $6.8 million, or 15.6%, during the first nine months of 2018 primarily due to properties sold in Trustmark’s Florida, Mississippi, Alabama and Tennessee market regions partially offset by new properties foreclosed in the Mississippi and Florida market regions.

LHFI totaled $8.747 billion at September 30, 2018, an increase of $177.1 million, or 2.1%, compared to December 31, 2017.  The increase in LHFI during the first nine months of 2018 was primarily due to net growth in loans secured by real estate in Trustmark’s Mississippi, Alabama and Florida market regions.  For additional information regarding changes in LHFI and comparative balances by loan category, see the section captioned “LHFI.”

Both classified and criticized LHFI balances remained at low levels and continued to reflect strong credit quality during the first nine months of 2018.  As of September 30, 2018, classified LHFI balances decreased $68.2 million, or 32.2%, while criticized LHFI balances decreased $75.7 million, or 29.8%, when compared to balances at December 31, 2017.  All of the credits have been reserved for appropriately.

Management has continued its practice of maintaining excess funding capacity to provide Trustmark with adequate liquidity for its ongoing operations.  In this regard, Trustmark benefits from its strong deposit base, its highly liquid investment portfolio and its access to funding from a variety of external funding sources such as upstream federal funds lines, FHLB advances and, on a limited basis, brokered deposits.

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Total deposits were $10.957 billion at September 30, 2018, an increase of $379.4 million, or 3.6%, compared to December 31, 2017.  During the first nine months of 2018, noninterest-bearing deposits decreased $191.5 million, or 6.4%, as a result of declines in all categories of noninterest-bearing deposit accounts, while interest-bearing deposits increased $570.9 million, or 7.5%, primarily due to growth in public and commercial interest checking accounts, commercial and consumer money market deposit accounts and consumer and public certificates of deposits, reflecting increases in interest rates in general.  

Trustmark uses short-term borrowings to fund growth of earning assets in excess of deposits growth.  Short-term borrowings totaled $676.9 million at September 30, 2018, a decrease of $764.0 million, or 53.0%, when compared to December 31, 2017.  The decrease in short-term borrowings during the first nine months of 2018 was primarily due to a $775.0 million decrease in the outstanding balance of short-term FHLB advances, as maturing short-term advances with the FHLB of Dallas were not replaced due to changes in Trustmark’s funding needs.  

Recent Legislative and Regulatory Developments

In April 2018, the federal banking agencies issued a notice of proposed rulemaking to revise their regulatory capital rules to address the Current Expected Credit Losses (CECL) accounting standard, and provide an option to phase in the day-one regulatory capital effects of the adoption of the CECL accounting standard over three years.  Under the proposed rules, an institution that is required to adopt the CECL accounting standard beginning the first quarter of 2020, such as Trustmark, would be able to make a one-time election to phase in the effects of the accounting standard on its regulatory capital calculations, such that the effects of adopting the CECL accounting standard on regulatory capital would be fully phased in as of the first quarter of 2023.  For additional information regarding Trustmark’s implementation of the CECL accounting standard, see the section captioned “Pending Accounting Pronouncements – ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” included in Note 20 – Accounting Policies Recently Adopted and Pending Accounting Pronouncements in Part I. Item 1. – Financial Statements of this report.

During April 2016, the Department of Labor (DOL) issued a final rule related to fiduciary standards that apply to the provision of advice to clients with respect to the investing of certain of their retirement accounts.  The final rule expanded the definition of a fiduciary under the Employee Retirement Income Security Act of 1974, as amended.  Under the rule, those who provide investment advice to plans, plan sponsors, fiduciaries, plan participants, beneficiaries and IRAs and IRA owners would generally either avoid payments that create conflicts of interest or satisfy an exemption from these requirements issued by the DOL, subject to certain exemptions.  The DOL repeatedly extended the rule’s applicability date.  Before the rule became fully applicable, the United States Court of Appeals for the Fifth Circuit, which covers Mississippi, Texas and Louisiana, vacated the fiduciary rule in its entirety, and the DOL did not appeal the decision.

However, on April 18, 2018, the SEC proposed a rule concerning the standards of conduct for financial professionals.  The SEC’s proposed rule would require broker-dealers to act in the best interest of their retail customers when recommending securities and to provide additional disclosure about the scope and terms of the relationship.  The proposed rule would clarify the fiduciary duty that an investment advisor owes to its clients and would specify that investment advisors have an affirmative duty of utmost good faith and full and fair disclosure of all material facts to their investors.  It is not clear when or if a final rule or guidance will be adopted and how the comments received might alter the provisions now in the proposals.  Management is engaged in a review of the potential impact the SEC’s proposed rule may have on the results of operations or financial condition of Trustmark or TNB.

On May 24, 2018, the president signed the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) into law.  The EGRRCPA increases the thresholds for application of certain enhanced prudential standards that the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) had applied to institutions of Trustmark’s size.  Under the EGRRCPA, the Dodd-Frank Act Stress Test (DFAST) company-run stress test requirement applies to bank holding companies and banks with $250 billion or more in total consolidated assets, rather than those with $10 billion or more in total consolidated assets as was the case under the Dodd-Frank Act.  The EGRRCPA also increases the threshold for application of the Dodd-Frank Act’s risk committee requirement for publicly-traded bank holding companies, from $10 billion to $50 billion in total consolidated assets.  Additionally, the EGRRCPA amends the federal banking agencies’ regulatory capital rules to narrow the definition of high volatility commercial real estate (HVCRE) loans, which receive a higher risk weighting than other commercial real estate loans under risk-based capital requirements.  Each of these changes has already taken effect for institutions of Trustmark’s and TNB’s size.  In light of Trustmark’s total consolidated assets, Management does not believe that the EGRRCPA will have an impact on Trustmark’s results of operations or financial condition.

In June 2018, five federal financial agencies released a proposal that would simplify and tailor compliance requirements relating to regulations implementing section 13 of the Bank Holding Company Act, known as the “Volcker Rule.”  The Volcker Rule generally prohibits insured depository institutions and their affiliates from engaging in proprietary trading or investing in or maintaining certain relationships with certain investment funds.  The proposal would replace compliance program requirements for a banking entity with

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trading assets and liabilities of less than $1 billion, including Trustmark and TNB, with a rebuttable presumption of the entity’s compliance with the Volcker Rule, and would simplify compliance requirements associated with exempt market making, underwriting, and risk-mitigating hedging activities for such an entity.  The proposal would also change the Volcker Rule’s definition of “trading account” by replacing the definition’s prong addressing the “purpose” of a trade with a new prong that is based on the accounting treatment of a position.  Management is reviewing the potential impact of the proposal on Trustmark and TNB.

For additional information regarding legislation and regulation applicable to Trustmark, see the section captioned “Supervision and Regulation” included in Part I. Item 1. – Business of Trustmark’s 2017 Annual Report on Form 10-K.

Selected Financial Data

The following tables present financial data derived from Trustmark’s consolidated financial statements as of and for the periods presented ($ in thousands, except per share data):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Consolidated Statements of Income
Total interest income	$	124,770		$	116,114		$	360,676		$	332,796
Total interest expense		17,787			12,202			46,436			29,290
Net interest income		106,983			103,912			314,240			303,506
Provision for loan losses, LHFI		8,673			3,672			15,801			9,355
Provision for loan losses, acquired loans		(467	)		(1,653	)		(758	)		(5,822	)
Noninterest income		47,093			44,480			141,277			140,703
Noninterest expense		105,223			103,086			311,488			327,218
Income before income taxes		40,647			43,287			128,986			113,458
Income taxes		4,394			8,708			16,090			23,596
Net Income	$	36,253		$	34,579		$	112,896		$	89,862
Total Revenue (1)	$	154,076		$	148,392		$	455,517		$	444,209
Per Share Data
Basic earnings per share	$	0.54		$	0.51		$	1.67		$	1.33
Diluted earnings per share		0.54			0.51			1.67			1.32
Cash dividends per share		0.23			0.23			0.69			0.69
Performance Ratios
Return on average equity		9.00	%		8.69	%		9.53	%		7.73	%
Return on average tangible equity		12.26	%		11.95	%		13.02	%		10.68	%
Return on average assets		1.07	%		0.99	%		1.12	%		0.88	%
Average equity/average assets		11.86	%		11.36	%		11.72	%		11.37	%
Net interest margin (fully taxable equivalent)		3.59	%		3.47	%		3.54	%		3.48	%
Dividend payout ratio		42.59	%		45.10	%		41.32	%		51.88	%
Credit Quality Ratios (2)
Net charge-offs (recoveries)/average loans		0.18	%		-0.02	%		0.08	%		—
Provision for loan losses/average loans		0.39	%		0.17	%		0.24	%		0.15	%
Nonperforming loans/total loans (incl LHFS)		0.76	%		0.80	%
Nonperforming assets/total loans (incl LHFS)    plus other real estate		1.16	%		1.36	%
Allowance for loan losses/total loans (excl LHFS)		1.02	%		0.96	%

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September 30,	2018			2017
Consolidated Balance Sheets
Total assets	$	13,439,812		$	13,884,655
Securities		2,808,516			3,471,372
Total loans (including LHFS and acquired loans)		9,062,309			8,895,255
Deposits		10,956,910			10,231,742
Total shareholders' equity		1,599,604			1,582,535
Stock Performance
Market value - close	$	33.65		$	33.12
Book value		23.66			23.36
Tangible book value		17.86			17.49
Capital Ratios
Total equity/total assets		11.90	%		11.40	%
Tangible equity/tangible assets		9.26	%		8.79	%
Tangible equity/risk-weighted assets		11.31	%		11.29	%
Tier 1 leverage ratio		10.41	%		9.61	%
Common equity tier 1 risk-based capital ratio		12.20	%		11.80	%
Tier 1 risk-based capital ratio		12.76	%		12.37	%
Total risk-based capital ratio		13.61	%		13.19	%

(1) Consistent with Trustmark’s audited annual financial statements, total revenue is defined as net interest income plus noninterest income

(2) Excludes acquired loans

Non-GAAP Financial Measures

In addition to capital ratios defined by U.S. generally accepted accounting principles (GAAP) and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy.  Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets.

Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions.  Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark’s capitalization to other organizations.  These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies across organizations.  In Management’s experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other tangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions.

These calculations are intended to complement the capital ratios defined by GAAP and banking regulators.  Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios.  Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark’s calculations may not be comparable with other organizations.  Also there may be limits in the usefulness of these measures to investors.  As a result, Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety and not to rely on any single financial measure. 

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The following table reconciles Trustmark’s calculation of these measures to amounts reported under GAAP for the periods presented ($ in thousands, except per share data):

		Three Months Ended September 30,						Nine Months Ended September 30,
		2018			2017			2018			2017
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity		$	1,597,588		$	1,577,867		$	1,584,095		$	1,554,566
Less:  Goodwill			(379,627	)		(379,627	)		(379,627	)		(374,707	)
Identifiable intangible assets			(13,083	)		(18,714	)		(14,405	)		(19,454	)
Total average tangible equity		$	1,204,878		$	1,179,526		$	1,190,063		$	1,160,405
PERIOD END BALANCES
Total shareholders' equity		$	1,599,604		$	1,582,535
Less:  Goodwill			(379,627	)		(379,627	)
Identifiable intangible assets			(12,391	)		(17,883	)
Total tangible equity	(a)	$	1,207,586		$	1,185,025
TANGIBLE ASSETS
Total assets		$	13,439,812		$	13,884,655
Less:  Goodwill			(379,627	)		(379,627	)
Identifiable intangible assets			(12,391	)		(17,883	)
Total tangible assets	(b)	$	13,047,794		$	13,487,145
Risk-weighted assets	(c)	$	10,681,621		$	10,498,582
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income		$	36,253		$	34,579		$	112,896		$	89,862
Plus:  Intangible amortization net of tax			965			950			2,979			2,870
Net income adjusted for intangible amortization		$	37,218		$	35,529		$	115,875		$	92,732
Period end shares outstanding	(d)		67,621,369			67,742,135
TANGIBLE EQUITY MEASUREMENTS
Return on average tangible equity (1)			12.26	%		11.95	%		13.02	%		10.68	%
Tangible equity/tangible assets	(a)/(b)		9.26	%		8.79	%
Tangible equity/risk-weighted assets	(a)/(c)		11.31	%		11.29	%
Tangible book value	(a)/(d)*1,000	$	17.86		$	17.49
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity		$	1,599,604		$	1,582,535
AOCI-related adjustments			79,946			27,825
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)			(365,823	)		(359,841	)
Other adjustments and deductions for CET1 (2)			(10,868	)		(11,359	)
CET1 capital	(e)		1,302,859			1,239,160
Additional tier 1 capital instruments plus related surplus			60,000			60,000
Less: additional tier 1 capital deductions			—			(471	)
Additional tier 1 capital			60,000			59,529
Tier 1 Capital		$	1,362,859		$	1,298,689
Common equity tier 1 risk-based capital ratio	(e)/(c)		12.20	%		11.80	%

(1) Calculated using annualized net income adjusted for intangible amortization divided by total average tangible equity

(2) Includes other intangible assets, net of DTLs, disallowed deferred tax assets, threshold deductions and transition adjustments, as applicable

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Significant Non-Routine Transactions

Trustmark discloses certain non-GAAP financial measures, including net income adjusted for significant non-routine transactions, because Management uses these measures for business planning purposes, including to manage Trustmark’s business against internal projected results of operations and to measure Trustmark’s performance.  Trustmark views net income adjusted for significant non-routine transactions as a measure of its core operating business, which excludes the impact of the items detailed below, as these items are generally not operational in nature.  This non-GAAP measure also provides another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items.  Readers are cautioned that these adjustments are not permitted under GAAP.  Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure.

The following table presents adjustments to net income and selected financial ratios as reported in accordance with GAAP resulting from significant non-routine transactions occurring during the periods presented ($ in thousands, except per share data):

	Three Months Ended September 30,										Nine Months Ended September 30,
	2018					2017					2018					2017
	Amount			Diluted EPS		Amount			Diluted EPS		Amount			Diluted EPS		Amount			Diluted EPS
Net Income (GAAP)	$	36,253		$	0.535	$	34,579		$	0.509	$	112,896		$	1.668	$	89,862		$	1.324
Significant non-routine transactions (net of taxes):
Defined benefit plan termination		—			—		—			—		—			—		10,895			0.161
Reliance merger transaction expenses		—			—		—			—		—			—		1,999			0.029
Non-taxable gain on acquired life insurance    proceeds		—			—		—			—		—			—		(4,894	)		(0.072	)
Net Income adjusted for significant    non-routine transactions (Non-GAAP)	$	36,253		$	0.535	$	34,579		$	0.509	$	112,896		$	1.668	$	97,862		$	1.442
	Reported (GAAP)			Adjusted (Non-GAAP)		Reported (GAAP)			Adjusted (Non-GAAP)		Reported (GAAP)			Adjusted (Non-GAAP)		Reported (GAAP)			Adjusted (Non-GAAP)
Return on average equity		9.00	%	n/a			8.69	%	n/a			9.53	%	n/a			7.73	%		8.42	%
Return on average tangible equity		12.26	%	n/a			11.95	%	n/a			13.02	%	n/a			10.68	%		11.61	%
Return on average assets		1.07	%	n/a			0.99	%	n/a			1.12	%	n/a			0.88	%		0.96	%

n/a – not applicable

Results of Operations

Net Interest Income

Net interest income is the principal component of Trustmark’s income stream and represents the difference, or spread, between interest and fee income generated from earning assets and the interest expense paid on deposits and borrowed funds.  Fluctuations in interest rates, as well as volume and mix changes in earning assets and interest-bearing liabilities, can materially impact net interest income. The net interest margin is computed by dividing fully taxable equivalent (FTE) net interest income by average interest-earning assets and measures how effectively Trustmark utilizes its interest-earning assets in relationship to the interest cost of funding them.  The accompanying Yield/Rate Analysis Tables show the average balances for all assets and liabilities of Trustmark and the interest income or expense associated with earning assets and interest-bearing liabilities.  The yields and rates have been computed based upon interest income and expense adjusted to a FTE basis using the federal statutory corporate tax rate in effect for each of the periods shown.  Loans on nonaccrual have been included in the average loan balances, and interest collected prior to these loans having been placed on nonaccrual has been included in interest income.  Loan fees included in interest associated with the average loan balances were immaterial.

Net interest income-FTE for the three and nine months ended September 30, 2018 increased $1.2 million, or 1.1%, and $5.6 million, or 1.8%, respectively, when compared with the same time periods in 2017.  The net interest margin for the three and nine months ended September 30, 2018 increased 12 and 6 basis points to 3.59% and 3.54%, respectively, when compared to the same time periods in 2017.  The increase in the net interest margin for the three and nine months ended September 30, 2018 was principally due to growth in the yield on the LHFI and LHFS portfolios, run-off of maturing investment securities and a favorable funding mix, partially offset by higher costs of interest-bearing deposits and a decrease in the fully tax equivalent adjustment as a result of the lower corporate tax rate due to the enactment of the Tax Reform Act.  The net interest margin excluding acquired loans, which equals the reported net interest income-FTE excluding interest and fees on acquired loans, as a percentage of average earning assets excluding

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average acquired loans, for the three and nine months ended September 30, 2018 increased 16 and 8 basis points to 3.50% and 3.44%, respectively, when compared to the same time periods in 2017, due to the factors discussed above.

Average interest-earning assets for the first nine months of 2018 were $12.236 billion compared to $12.221 billion for the same time period in 2017, an increase of $14.6 million, or 0.1%.  The growth in average earning assets during the first nine months of 2018 was primarily due to increases in average loans (LHFS and LHFI) of $431.4 million, or 5.2%, and average other earning assets of $115.9 million, which were largely offset by decreases in average total securities of $439.7 million, or 12.5% and average acquired loans of $91.2 million, or 31.6%.  The increase in average loans (LHFS and LHFI) was primarily attributable to the $339.7 million, or 4.0%, increase in the LHFI portfolio when balances at September 30, 2018 are compared to balances at September 30, 2017.  This increase was principally due to net growth in loans secured by real estate in Trustmark’s Alabama, Mississippi and Florida market regions.  The increase in average other earning assets when the first nine months of 2018 is compared to the same time period in 2017 was primarily due to growth in interest-bearing deposits due from depository institutions.  The decrease in average total securities was primarily due to calls, maturities and pay-downs of the underlying loans of government-sponsored enterprise (GSE) guaranteed securities as well as declines in the fair market value of the securities available for sale.  The decrease in average acquired loans when the first nine months of 2018 is compared to the same time period in 2017 was primarily due to pay-downs and pay-offs of the acquired loans as well as acquired loans that were transferred to LHFI.

During the first nine months of 2018, interest and fees on LHFS and LHFI-FTE increased $33.5 million, or 12.5%, when compared to the same time period in 2017, due principally to the growth in the LHFI portfolio, while the yield on loans (LHFS and LHFI) increased 30 basis points to 4.59% as a result of increases in interest rates during the period.  During the first nine months of 2018, interest on securities-FTE decreased $8.6 million, or 14.1%, compared to the same time period in 2017, primarily due to the run off of maturing investment securities.  The yield on total securities for the first nine months of 2018 decreased 5 basis points to 2.28% compared to the same time period in 2017.  As a result of these factors, interest income-FTE increased $22.7 million, or 6.5%, when the first nine months of 2018 is compared to the same time period in 2017, while the yield on total earning assets increased 25 basis points to 4.05%.

Average interest-bearing liabilities for the first nine months of 2018 totaled $8.839 billion compared to $8.914 billion for the same time period in 2017, a decrease of $75.3 million, or 0.8%.  The decrease in average interest-bearing liabilities represented declines in average other borrowings and average federal funds purchased and securities sold under repurchase agreements which were mostly offset by an increase in average interest-bearing deposits.  Average other borrowings decreased $827.6 million, or 64.5%, when the first nine months of 2018 is compared to the same time period in 2017, primarily reflecting a decrease in the balance of outstanding short-term FHLB advances obtained from the FHLB of Dallas.  Average federal funds purchased and securities sold under repurchase agreements for the first nine months of 2018 declined $198.2 million, or 37.8%, when compared to the same time period in 2017, primarily due to a decrease in upstream federal funds purchased as a result of increases in interest rates and changes in funding needs.  Average interest-bearing deposits for the first nine months of 2018 increased $950.5 million, or 13.4%, when compared to the same time period in 2017, as a result of growth in all categories of average interest-bearing deposits primarily due to increases in interest rates in general.

Total interest expense for the first nine months of 2018 increased $17.1 million, or 58.5%, when compared with the same time period in 2017 due primarily to an increase in interest on deposits, in conjunction with increasing interest rates in general, partially offset by a decline in other interest expense.  Interest on deposits increased $21.2 million while the rate on interest-bearing deposits increased 32 basis points to 0.61% when the first nine months of 2018 is compared to the same time period in 2017, primarily due to increases in average balances of all categories of interest-bearing deposits and rising interest rates in general.  Other interest expense decreased $4.2 million, or 39.2%, when the first nine months of 2018 is compared to the same time period in 2017, primarily due to the decline in the balance of outstanding short-term FHLB advances with the FHLB of Dallas, while the rate on other borrowings increased 80 basis points to 1.93% reflecting an increase in rates.  As a result of these factors, the overall yield on interest-bearing liabilities increased 26 basis points to 0.70% when the first nine months of 2018 is compared with the first nine months of 2017.

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The following tables provide the tax equivalent basis yield or rate for each component of the tax equivalent net interest margin for the periods presented ($ in thousands):

	Three Months Ended September 30,
	2018								2017
	Average Balance			Interest		Yield/ Rate			Average Balance			Interest		Yield/ Rate
Assets
Interest-earning assets:
Federal funds sold and securities purchased under    reverse repurchase agreements	$	477		$	3		2.50	%	$	3,582		$	14		1.55	%
Securities - taxable		2,871,101			16,186		2.24	%		3,436,509			19,291		2.23	%
Securities - nontaxable		71,072			656		3.66	%		100,823			1,104		4.34	%
Loans (LHFS and LHFI)		8,907,588			105,993		4.72	%		8,532,523			93,703		4.36	%
Acquired loans		147,811			4,033		10.82	%		299,221			6,625		8.78	%
Other earning assets		189,471			1,050		2.20	%		84,320			355		1.67	%
Total interest-earning assets		12,187,520			127,921		4.16	%		12,456,978			121,092		3.86	%
Cash and due from banks		330,949								312,409
Other assets		1,035,327								1,202,766
Allowance for loan losses, net		(86,496	)							(85,363	)
Total Assets	$	13,467,300							$	13,886,790
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits	$	8,177,057			14,972		0.73	%	$	7,213,070			6,381		0.35	%
Federal funds purchased and securities sold under    repurchase agreements		347,489			1,348		1.54	%		547,863			1,301		0.94	%
Other borrowings		249,052			1,467		2.34	%		1,398,302			4,520		1.28	%
Total interest-bearing liabilities		8,773,598			17,787		0.80	%		9,159,235			12,202		0.53	%
Noninterest-bearing demand deposits		2,894,061								3,003,763
Other liabilities		202,053								145,925
Shareholders' equity		1,597,588								1,577,867
Total Liabilities and Shareholders' Equity	$	13,467,300							$	13,886,790
Net Interest Margin					110,134		3.59	%					108,890		3.47	%
Less tax equivalent adjustment					3,151								4,978
Net Interest Margin per Consolidated    Statements of Income				$	106,983							$	103,912

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	Nine Months Ended September 30,
	2018								2017
	Average Balance			Interest		Yield/ Rate			Average Balance			Interest		Yield/ Rate
Assets
Interest-earning assets:
Federal funds sold and securities purchased under    reverse repurchase agreements	$	673		$	10		1.99	%	$	2,399		$	26		1.45	%
Securities - taxable		3,008,755			50,586		2.25	%		3,418,925			57,865		2.26	%
Securities - nontaxable		80,644			2,213		3.67	%		110,215			3,582		4.35	%
Loans (LHFS and LHFI)		8,751,665			300,466		4.59	%		8,320,255			266,979		4.29	%
Acquired loans		197,352			13,932		9.44	%		288,599			18,077		8.37	%
Other earning assets		196,470			3,038		2.07	%		80,553			993		1.65	%
Total interest-earning assets		12,235,559			370,245		4.05	%		12,220,946			347,522		3.80	%
Cash and due from banks		328,868								310,313
Other assets		1,036,091								1,222,619
Allowance for loan losses, net		(85,054	)							(84,036	)
Total Assets	$	13,515,464							$	13,669,842
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing deposits	$	8,056,505			36,602		0.61	%	$	7,106,046			15,433		0.29	%
Federal funds purchased and securities sold under    repurchase agreements		326,129			3,260		1.34	%		524,295			3,036		0.77	%
Other borrowings		456,189			6,574		1.93	%		1,283,756			10,821		1.13	%
Total interest-bearing liabilities		8,838,823			46,436		0.70	%		8,914,097			29,290		0.44	%
Noninterest-bearing demand deposits		2,902,100								3,040,672
Other liabilities		190,446								160,507
Shareholders' equity		1,584,095								1,554,566
Total Liabilities and Shareholders' Equity	$	13,515,464							$	13,669,842
Net Interest Margin					323,809		3.54	%					318,232		3.48	%
Less tax equivalent adjustment					9,569								14,726
Net Interest Margin per Consolidated    Statements of Income				$	314,240							$	303,506

Provision for Loan Losses, LHFI

The provision for loan losses, LHFI is determined by Management as the amount necessary to adjust the allowance for loan losses, LHFI to a level, which, in Management’s best estimate, is necessary to absorb probable losses within the existing loan portfolio.  The provision for loan losses, LHFI reflects loan quality trends, including the levels of and trends related to nonaccrual LHFI, past due LHFI, potential problem LHFI, criticized LHFI, net charge-offs or recoveries and growth in the LHFI portfolio among other factors.  Accordingly, the amount of the provision reflects the necessary increases or decreases in the allowance for loan losses, LHFI related to adjustments for specific loans or loan pools as a result of growth in the portfolio and evaluation of current impairment analyses, actions taken with respect to risk ratings on loans and other adjustments resulting from changes in qualitative factors.  The provision for loan losses, LHFI totaled $8.7 million and $15.8 million for the three and nine months ended September 30, 2018, respectively, an increase of $5.0 million and $6.4 million, respectively, when compared to the same time periods in 2017.  The increase in the provision for loan losses, LHFI when the three and nine months ended September 30, 2018 are compared to the same time periods in 2017 was primarily due to increases in the amount of provision expense related to new and existing impaired LHFI and net charge-offs partially offset by declines in provision expense related to changes in quantitative reserve factors and loan growth as well as the specific reserves recorded during the third quarter of 2017 related to Hurricane Harvey.  See the section captioned “Allowance for Loan Losses, LHFI” for further analysis of the provision for loan losses, LHFI.

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Provision for Loan Losses, Acquired Loans

The provision for loan losses, acquired loans is recognized subsequent to acquisition to the extent it is probable that Trustmark will be unable to collect all cash flows expected at acquisition plus additional cash flows expected to be collected arising from changes in estimates after acquisition, considering both the timing and amount of those expected cash flows.  Provisions may be required when actual losses of unpaid principal incurred exceed previous loss expectations to date, or future cash flows previously expected to be collectible are no longer probable of collection.  The provision for loan losses, acquired loans is reflected as a valuation allowance netted against the carrying value of the acquired loans accounted for under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.”  The negative provision for loan losses, acquired loans declined $1.2 million, or 71.7%, and $5.1 million, or 87.0%, respectively, when the three and nine months ended September 30, 2018 are compared to the same time periods in 2017, principally due to changes in expectations based on the periodic re-estimations performed during the respective periods and acquired impaired loans that were transferred to LHFI during the second and third quarters of 2018.

The following table presents the provision for loan losses, acquired loans, by acquisition for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
BancTrust	$	(467	)	$	(1,400	)	$	(1,169	)	$	(4,386	)
Bay Bank		—			(273	)		377			(1,350	)
Heritage		—			20			61			(86	)
Reliance		—			—			(27	)		—
Total provision for loan losses, acquired loans	$	(467	)	$	(1,653	)	$	(758	)	$	(5,822	)

Noninterest Income

Noninterest income represented 30.6% and 31.0% of total revenue, before securities gains (losses), net, for the three and nine months ended September 30, 2018, respectively, compared to 30.0% and 31.7% for the three and nine months ended September 30, 2017, respectively.  The following table provides the comparative components of noninterest income for the periods presented ($ in thousands):

	Three Months Ended September 30,										Nine Months Ended September 30,
	2018		2017		$ Change			% Change			2018		2017		$ Change			% Change
Service charges on deposit accounts	$	11,075	$	11,223	$	(148	)		-1.3	%	$	32,579	$	32,810	$	(231	)		-0.7	%
Bank card and other fees		7,459		7,150		309			4.3	%		21,155		21,020		135			0.6	%
Mortgage banking, net		8,647		4,425		4,222			95.4	%		28,958		23,618		5,340			22.6	%
Insurance commissions		10,765		10,398		367			3.5	%		30,919		29,355		1,564			5.3	%
Wealth management		7,789		7,530		259			3.4	%		22,834		22,617		217			1.0	%
Other, net		1,358		3,740		(2,382	)		-63.7	%		4,832		11,268		(6,436	)		-57.1	%
Total noninterest income    before securities gains    (losses), net		47,093		44,466		2,627			5.9	%		141,277		140,688		589			0.4	%
Security gains (losses), net		—		14		(14	)		-100.0	%		—		15		(15	)		-100.0	%
Total noninterest income	$	47,093	$	44,480	$	2,613			5.9	%	$	141,277	$	140,703	$	574			0.4	%

Changes in various components of noninterest income are discussed in further detail below.  For analysis of Trustmark’s insurance commissions and wealth management income, please see the section captioned “Results of Segment Operations” of this report.

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Mortgage Banking, Net

The following table illustrates the components of mortgage banking, net included in noninterest income for the periods presented ($ in thousands):

	Three Months Ended September 30,												Nine Months Ended September 30,
	2018			2017			$ Change			% Change			2018			2017			$ Change			% Change
Mortgage servicing income, net	$	5,428		$	5,295		$	133			2.5	%	$	16,518		$	16,192		$	326			2.0	%
Change in fair value-MSR from runoff		(3,181	)		(2,892	)		(289	)		-10.0	%		(9,022	)		(8,175	)		(847	)		-10.4	%
Gain on sales of loans, net		6,411			5,083			1,328			26.1	%		16,410			13,634			2,776			20.4	%
Other, net		(83	)		(450	)		367			81.6	%		1,577			951			626			65.8	%
Mortgage banking income before    hedge ineffectiveness		8,575			7,036			1,539			21.9	%		25,483			22,602			2,881			12.7	%
Change in fair value-MSR from    market changes		2,615			(2,393	)		5,008		n/m				13,879			(2,218	)		16,097		n/m
Change in fair value of derivatives		(2,543	)		(218	)		(2,325	)	n/m				(10,404	)		3,234			(13,638	)	n/m
Net positive (negative) hedge    ineffectiveness		72			(2,611	)		2,683		n/m				3,475			1,016			2,459		n/m
Mortgage banking, net	$	8,647		$	4,425		$	4,222			95.4	%	$	28,958		$	23,618		$	5,340			22.6	%

n/m - percentage changes greater than +/- 100% are not considered meaningful

The increase in mortgage banking, net for the three and nine months ended September 30, 2018 when compared to the same time periods in 2017 was principally due to increases in the net positive hedge ineffectiveness and gain on sales of loans, net.   Mortgage loan production for the nine months ended September 30, 2018 was $1.097 billion, an increase of $79.7 million, or 7.8%, when compared to the same time period in 2017.  Loans serviced for others totaled $6.759 billion at September 30, 2018, compared with $6.541 billion at September 30, 2017, an increase of $218.0 million, or 3.3%.

Representing a significant component of mortgage banking income is gain on the sales of loans, net.  The increase in the gain on sales of loans, net when the three and nine months ended September 30, 2018 are compared to the same time periods in 2017, was primarily the result of higher profit margins in secondary marketing activities.  Loan sales totaled $304.9 million and $820.6 million for the three and nine months ended September 30, 2018, respectively, a decrease of $10.3 million, or 3.3%, and $51.3 million, or 5.9%, respectively, when compared with the same time periods in 2017.

Other Income, Net

The following table illustrates the components of other income, net included in noninterest income for the periods presented ($ in thousands):

	Three Months Ended September 30,												Nine Months Ended September 30,
	2018			2017			$ Change			% Change			2018			2017			$ Change			% Change
Partnership amortization for tax    credit purposes	$	(2,202	)	$	(2,521	)	$	319			12.7	%	$	(6,606	)	$	(7,082	)	$	476			6.7	%
Increase in life insurance cash    surrender value		1,805			1,813			(8	)		-0.4	%		5,313			5,309			4			0.1	%
Other miscellaneous income		1,755			4,448			(2,693	)		-60.5	%		6,125			13,041			(6,916	)		-53.0	%
Total other, net	$	1,358		$	3,740		$	(2,382	)		-63.7	%	$	4,832		$	11,268		$	(6,436	)		-57.1	%

The decrease in other income, net when the three and nine months ended September 30, 2018 are compared to the same time periods in 2017 was primarily due to a decrease in other miscellaneous income principally due to $2.7 million of nontaxable proceeds related to Trustmark’s bank-owned life insurance received during the third quarter of 2017 and $4.9 million of nontaxable proceeds related to life insurance acquired in a previous acquisition received during the second quarter of 2017.  Excluding the nontaxable life insurance proceeds, other miscellaneous income increased $43.7 thousand, or 2.6%, when the three months ended September 30, 2018 is compared to the same time period in 2017 and decreased $519 thousand, or 9.6%, when the first nine months of 2018 is compared to the same time period in 2017.

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Noninterest Expense

The following table illustrates the comparative components of noninterest expense for the periods presented ($ in thousands):

	Three Months Ended September 30,												Nine Months Ended September 30,
	2018			2017			$ Change			%Change			2018			2017			$ Change			% Change
Salaries and employee benefits	$	60,847		$	57,871		$	2,976			5.1	%	$	179,297		$	170,445		$	8,852			5.2	%
Defined benefit plan termination    charge		—			—			—			—			—			17,644			(17,644	)		-100.0	%
Services and fees		16,404			15,133			1,271			8.4	%		48,472			45,474			2,998			6.6	%
Net occupancy-premises		6,910			6,702			208			3.1	%		19,962			19,150			812			4.2	%
Equipment expense		6,200			6,297			(97	)		-1.5	%		18,501			18,457			44			0.2	%
Other real estate expense:
Write-downs		892			432			460		n/m				1,857			2,593			(736	)		-28.4	%
Net (gain) loss on sale		(224	)		(200	)		(24	)		-12.0	%		(1,226	)		(1,722	)		496			28.8	%
Carrying costs		500			632			(132	)		-20.9	%		1,310			2,135			(825	)		-38.6	%
Total other real estate expense, net		1,168			864			304			35.2	%		1,941			3,006			(1,065	)		-35.4	%
FDIC assessment expense		1,999			2,816			(817	)		-29.0	%		7,532			8,142			(610	)		-7.5	%
Other expense		11,695			13,403			(1,708	)		-12.7	%		35,783			44,900			(9,117	)		-20.3	%
Total noninterest expense	$	105,223		$	103,086		$	2,137			2.1	%	$	311,488		$	327,218		$	(15,730	)		-4.8	%

n/m - percentage changes greater than +/- 100% are not considered meaningful

Changes in the various components of noninterest expense are discussed in further detail below.  Management considers disciplined expense management a key area of focus in the support of improving shareholder value.  Noninterest expense for the nine months ended September 30, 2017 included a one-time defined benefit pension plan termination charge of $17.6 million and $3.2 million of one-time expenses related to the completion of the Reliance merger (included in other expense).  Excluding these non-routine transactions, noninterest expense for the nine months ended September 30, 2018 increased $5.2 million, or 1.7%, when compared to the same time period in 2017.

Salaries and Employee Benefits

The increase in salaries and employee benefits when the three and nine months ended September 30, 2018 are compared to the same time periods in 2017 was principally due to increases in salaries and incentive compensation as a result of general merit increases and higher commission expense as a result of improvements in the insurance and mortgage origination lines of business.  Trustmark adopted FASB Accounting Standard Update (ASU) 2017-07, “Compensation-Retirement Benefits (Topic 715)-Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” effective January 1, 2018.  As a result of adopting ASU 2017-07, Trustmark was required to reclassify $966 thousand and $4.8 million of net periodic benefit cost, excluding the service cost component, from salaries and employee benefits to other expense for the three and nine months ended September 30, 2017, respectively.

Services and Fees

The increase in services and fees when the three and nine months ended September 30, 2018 are compared to the same time periods in 2017 was primarily the result of investments in new data processing software designed to improve efficiency and customer experience.

Other Real Estate Expense

The decrease in other real estate expense for the nine months ended September 30, 2018 when compared to the same time period in 2017 was principally due to declines in write-downs of other real estate and real estate tax and foreclosure expenses.  Please see the section captioned “Other Real Estate” for additional information regarding other real estate expense.

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Other Expense

The following table illustrates the comparative components of other noninterest expense for the periods presented ($ in thousands):

	Three Months Ended September 30,										Nine Months Ended September 30,
	2018		2017		$ Change			% Change			2018		2017		$ Change			% Change
Loan expense	$	2,824	$	3,013	$	(189	)		-6.3	%	$	8,661	$	8,632	$	29			0.3	%
Amortization of intangibles		1,286		1,539		(253	)		-16.4	%		3,969		4,647		(678	)		-14.6	%
Defined benefit plans non-service cost    reclass from salaries and employee    benefits		885		966		(81	)		-8.4	%		2,655		4,754		(2,099	)		-44.2	%
Other miscellaneous expense		6,700		7,885		(1,185	)		-15.0	%		20,498		26,867		(6,369	)		-23.7	%
Total other expense	$	11,695	$	13,403	$	(1,708	)		-12.7	%	$	35,783	$	44,900	$	(9,117	)		-20.3	%

The decrease in other expense for the three months ended September 30, 2018 when compared to the same time period in 2017 was primarily due to declines in various miscellaneous expenses.  The decrease in other expense for the first nine months of 2018 when compared to the first nine months of 2017 was principally due to the $3.2 million of one-time expenses related to the completion of the Reliance merger (included in other miscellaneous expense) incurred during the second quarter of 2017 as well as declines in various miscellaneous expenses and a decrease in defined benefit plan expense principally due to the termination of the Trustmark Capital Accumulation Plan (the Plan).

Results of Segment Operations

For a description of the methodologies used to measure financial performance and financial information by reportable segment, please see Note 19 – Segment Information included in Part I. Item 1. – Financial Statements of this report.  The following discusses changes in the results of operations of each reportable segment for the nine months ended September 30, 2018 and 2017.

General Banking

Net interest income for the General Banking Division increased $10.7 million, or 3.5%, when the nine months ended September 30, 2018 is compared with the same time period in 2017.  The increase in net interest income was primarily due to increases in interest and fees on LHFS and LHFI and a decrease in other interest expense, partially offset by an increase in interest on deposits and declines in interest on securities and interest and fees on acquired loans.  The provision for loan losses, net for the nine months ended September 30, 2018 totaled $15.0 million compared to $3.5 million for the same period in 2017, an increase of $11.5 million.  For more information on these net interest income items, please see the sections captioned “Financial Highlights” and “Results of Operations.”

Noninterest income for the General Banking Division decreased $1.2 million, or 1.4%, during the first nine months of 2018 compared to the same time period in 2017, primarily due to $2.7 million of nontaxable proceeds related to Trustmark’s bank-owned life insurance received during the third quarter of 2017 and $4.9 million of nontaxable proceeds related to life insurance acquired in a previous acquisition received during the second quarter of 2017.  Excluding these nontaxable proceeds, noninterest income for the General Banking Division increased $5.2 million, or 6.3%, when the first nine months of 2018 is compared to the same time period in 2017.  Noninterest income for the General Banking Division represented 21.8% of total revenue for this segment for the first nine months of 2018 as opposed to 22.7% for the same time period in 2017.  Noninterest income for the General Banking Division includes service charges on deposit accounts; bank card and other fees; mortgage banking, net; other income, net and securities gains (losses), net.  For more information on these noninterest income items, please see the analysis included in the section captioned “Noninterest Income.”

Noninterest expense for the General Banking Division decreased $17.0 million, or 6.0%, during the first nine months of 2018 compared with the same time period in 2017, principally due to a one-time defined benefit pension plan termination charge of $17.6 million and $3.2 million of one-time expenses related to the completion of the Reliance merger incurred during the second quarter of 2017.  Excluding these non-routine expenses, noninterest expense for the General Banking Division for the first nine months of 2018 increased $3.9 million, or 1.5%, when compared to the same time period in 2017, principally due to increases in salaries and employee benefits, primarily as a result of general merit increases and higher mortgage origination commission expense, and services and fees, primarily related to data processing software expenses, partially offset by declines in other expense, primarily due to declines in various miscellaneous expenses and a decrease in defined benefit plan expense principally due to the termination of the Plan, and other real estate expense, primarily due to declines in write-downs of other real estate and real estate tax and foreclosure expenses.  For more information on these noninterest expense items, please see the analysis included in the section captioned “Noninterest Expense.”

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Wealth Management

During the first nine months of 2018, net income for the Wealth Management Division increased $885 thousand, or 49.9%, when compared to the same time period in 2017.  Noninterest income, which includes income related to investment management, trust and brokerage services, increase $255 thousand, or 1.1%, when the first nine months of 2018 is compared to the same time period in 2017, primarily due to increases in commissions and fees from investment services.  Noninterest expense for the Wealth Management Division decreased $365 thousand, or 1.8%, during the first nine months of 2018 compared to the same time period in 2017, principally due to a decrease in other miscellaneous expense partially offset by increases in data processing expense related to software and salaries and employee benefits resulting from improvements in retail brokerage activity.

At September 30, 2018 and 2017, Trustmark held assets under management and administration of $10.920 billion and $10.406 billion, respectively, and brokerage assets of $1.867 billion and $1.744 billion, respectively.

Insurance

Net income for the Insurance Division during the first nine months of 2018 increased $916 thousand, or 21.0%, compared to the same time period in 2017.  Noninterest income for the Insurance Division, which is predominately composed of insurance commissions, increased $1.6 million, or 5.3%, when the first nine months of 2018 is compared to the same time period in 2017.  The increase in insurance commissions during the first nine months of 2018 when compared to the same time period in 2017 was primarily due to new business commission volume primarily in property and casualty coverage.  Noninterest expense for the Insurance Division increased $1.6 million, or 7.1%, when the first nine months of 2018 is compared to the same time period in 2017, primarily due to higher salaries expense resulting from modest general merit increases and higher commission expense due to improvements in business volumes.

Income Taxes

For the three and nine months ended September 30, 2018, Trustmark’s combined effective tax rate was 10.8% and 12.5%, compared to 20.1% and 20.8% for the same time periods in 2017.  The decrease in the effective tax rate for the three and nine months ended September 30, 2018, compared to the same time periods in 2017, was primarily due to the enactment of the Tax Reform Act.  Trustmark’s effective tax rate continues to be less than the statutory rate primarily due to various tax-exempt income items and its utilization of income tax credit programs.  Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low income housing tax credits or historical tax credits).  The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.

Financial Condition

Earning assets serve as the primary revenue streams for Trustmark and are comprised of securities, loans, federal funds sold and other earning assets.  Average earning assets totaled $12.236 billion, or 90.5% of total average assets, for the nine months ended September 30, 2018, compared to $12.221 billion, or 89.4% of total average assets, for the nine months ended September 30, 2017, an increase of $14.6 million, or 0.1%.

Securities

The securities portfolio is utilized by Management to manage interest rate risk, generate interest income, provide liquidity and use as collateral for public deposits and wholesale funding.  Risk and return can be adjusted by altering duration, composition and/or balance of the portfolio.  The weighted-average life of the portfolio was 3.9 years at September 30, 2018 compared to 3.8 years at December 31, 2017.

When compared with December 31, 2017, total investment securities decreased by $486.6 million, or 14.8%, during the first nine months of 2018.  This decrease resulted primarily from calls, maturities and pay-downs of the loans underlying GSE guaranteed securities as well as a net decline in the fair market value of the securities available for sale.  Trustmark sold no securities during the first nine months of 2018, compared to $27.7 million of securities sold during the first nine months of 2017, which generated a net gain of $15 thousand.

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During 2013, Trustmark reclassified approximately $1.099 billion of securities available for sale to securities held to maturity to mitigate the potential adverse impact of a rising interest rate environment on the fair value of the available for sale securities and the related impact on tangible common equity.  The resulting net unrealized holding loss is being amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security.  At September 30, 2018, the net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive loss, net of tax, (AOCL) in the accompanying consolidated balance sheets totaled $16.6 million ($12.4 million net of tax) compared to $19.5 million ($12.0 million net of tax) at December 31, 2017.

Available for sale securities are carried at their estimated fair value with unrealized gains or losses recognized, net of taxes, in AOCL, a separate component of shareholders’ equity.  At September 30, 2018, available for sale securities totaled $1.865 billion, which represented 66.4% of the securities portfolio, compared to $2.239 billion, or 67.9%, at December 31, 2017.  At September 30, 2018, unrealized losses, net on available for sale securities totaled $70.5 million compared to $23.5 million at December 31, 2017.  At September 30, 2018, available for sale securities consisted of obligations of states and political subdivisions, GSE guaranteed mortgage-related securities and direct obligations of government agencies and GSEs.

Held to maturity securities are carried at amortized cost and represent those securities that Trustmark both intends and has the ability to hold to maturity.  At September 30, 2018, held to maturity securities totaled $943.9 million and represented 33.6% of the total securities portfolio, compared with $1.056 billion, or 32.1%, at December 31, 2017.

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of approximately 96% of the portfolio in GSE-backed obligations and other Aaa-rated securities as determined by Moody’s Investors Services (Moody’s).  None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime.  Furthermore, outside of stock ownership in the FHLB of Dallas, FHLB of Atlanta and Federal Reserve Bank of Atlanta, Trustmark does not hold any other equity investment in a GSE.

As of September 30, 2018, Trustmark did not hold securities of any one issuer with a carrying value exceeding ten percent of total shareholders’ equity, other than certain GSEs which are exempt from inclusion.  Management continues to closely monitor the credit quality as well as the ratings of the debt and mortgage-backed securities issued by the GSEs and held in Trustmark’s securities portfolio.

The following table presents Trustmark’s securities portfolio by amortized cost and estimated fair value and by credit rating, as determined by Moody’s, at September 30, 2018 ($ in thousands):

	September 30, 2018
	Amortized Cost					Estimated Fair Value
	Amount		%			Amount		%
Securities Available for Sale
Aaa	$	1,877,974		97.1	%	$	1,807,368		96.9	%
Aa1 to Aa3		42,275		2.2	%		42,402		2.3	%
A1 to A3		520		—			519		—
Baa1 to Baa3		208		—			202		—
Not Rated (1)		14,125		0.7	%		14,142		0.8	%
Total securities available for sale	$	1,935,102		100.0	%	$	1,864,633		100.0	%
Securities Held to Maturity
Aaa	$	901,260		95.5	%	$	864,678		95.3	%
Aa1 to Aa3		33,657		3.6	%		33,638		3.7	%
Baa1 to Baa3		403		—			403		—
Not Rated (1)		8,563		0.9	%		8,598		1.0	%
Total securities held to maturity	$	943,883		100.0	%	$	907,317		100.0	%

(1) Not rated issues primarily consist of Mississippi municipal general obligations

The table above presenting the credit rating of Trustmark’s securities is formatted to show the securities according to the credit rating category, and not by category of the underlying security.  At September 30, 2018, approximately 96.9% of the available for sale securities, measured at the estimated fair value, and 95.5% of the held to maturity securities, measured at amortized cost, were rated Aaa.

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LHFS

At September 30, 2018, LHFS totaled $182.7 million, consisting of $134.9 million of residential real estate mortgage loans in the process of being sold to third parties and $47.8 million of Government National Mortgage Association (GNMA) optional repurchase loans.  At December 31, 2017, LHFS totaled $180.5 million, consisting of $132.3 million of residential real estate mortgage loans in the process of being sold to third parties and $48.2 million of GNMA optional repurchase loans.  Please refer to the nonperforming assets table that follows for information on GNMA loans eligible for repurchase which are past due 90 days or more.

Trustmark did not exercise its buy-back option on any delinquent loans serviced for GNMA during the first nine months of 2018 or 2017.

For additional information regarding the GNMA optional repurchase loans, please see the section captioned “Past Due Loans Held for Sale (LHFS)” included in Note 4 – Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI of Part I. Item 1. – Financial Statements of this report.

LHFI

The table below shows the carrying value of the LHFI portfolio by loan type at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018					December 31, 2017
	Amount		%			Amount		%
Loans secured by real estate:
Construction, land development and other land	$	1,031,491		11.8	%	$	987,624		11.5	%
Secured by 1-4 family residential properties		1,801,029		20.6	%		1,675,311		19.6	%
Secured by nonfarm, nonresidential properties		2,294,289		26.2	%		2,193,823		25.6	%
Other real estate secured		453,687		5.2	%		517,956		6.1	%
Commercial and industrial loans		1,565,922		17.9	%		1,570,345		18.3	%
Consumer loans		182,709		2.1	%		171,918		2.0	%
State and other political subdivision loans		929,178		10.6	%		952,483		11.1	%
Other loans		488,725		5.6	%		500,507		5.8	%
LHFI	$	8,747,030		100.0	%	$	8,569,967		100.0	%

LHFI increased $177.1 million, or 2.1%, compared to December 31, 2017.  The increase in LHFI during the first nine months of 2018 was primarily due to net growth in loans secured by real estate in Trustmark’s Mississippi, Alabama and Florida market regions.

LHFI secured by real estate increased $205.8 million, or 3.8%, during the first nine months of 2018 representing net growth in LHFI secured by 1-4 family residential properties, LHFI secured by nonfarm, nonresidential properties (NFNR LHFI) and construction, land development and other land loans partially offset by declines in LHFI secured by other real estate.  LHFI secured by 1-4 family residential properties increased $125.7 million, or 7.5%, during the first nine months of 2018, primarily due to growth in mortgage loans in the Mississippi, Alabama and Florida market regions.  NFNR LHFI increased $100.5 million, or 4.6%, during the first nine months of 2018, principally due to movement from the other construction loans category.  Excluding other construction loan reclassifications, the NFNR LHFI portfolio declined $108.0 million, or 4.9%, during the first nine months of 2018 primarily due to declines in owner occupied loans in the Mississippi, Tennessee and Texas market regions and non-owner occupied loans in the Texas, Mississippi and Florida market regions, partially offset by growth in non-owner occupied loans in the Alabama and Tennessee market regions and owner occupied loans in the Florida and Alabama market regions.  LHFI secured by construction, land development and other land increased $43.9 million, or 4.4%, during the first nine months of 2018 primarily due to new loans in the other construction, 1-4 family construction and development categories, partially offset by other construction loans moved to other loan categories upon the completion of the related construction project.  During the first nine months of 2018, $330.0 million loans were moved from other construction to other loan categories, including $162.8 million to non-owner occupied loans, $47.0 million to owner occupied loans, and $120.2 million to multi-family residential loans.  Excluding all reclassifications between loan categories, growth in other construction loans across all five market regions totaled $334.6 million during the first nine months of 2018.  LHFI secured by other real estate declined $64.3 million, or 12.4%, during the first nine months of 2018, primarily due to declines in LHFI secured by multi-family residential properties in the Tennessee, Mississippi, Alabama and Texas market regions.  

Trustmark’s exposure to the energy sector is primarily included in the commercial and industrial loan portfolio in Trustmark’s Mississippi and Texas market regions.  At September 30, 2018 and December 31, 2017, energy-related LHFI had outstanding balances of approximately $183.8 million and $226.5 million, respectively, which represented approximately 2.1% of Trustmark’s total LHFI portfolio at September 30, 2018 compared to approximately 2.6% of the total LHFI portfolio at December 31, 2017.  Trustmark has no loan exposure where the source of repayment, or the underlying security of such exposure, is tied to the realization of value from

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energy reserves.  Should oil prices fall below current levels for a prolonged period of time, there is potential for downgrades to occur.  Management will continue to monitor this exposure.  

The following table provides information regarding Trustmark’s home equity loans and home equity lines of credit which are included in the LHFI secured by 1-4 family residential properties for the periods presented ($ in thousands):

	September 30, 2018			December 31, 2017
Home equity loans	$	50,994		$	47,032
Home equity lines of credit		399,175			407,627
Percentage of loans and lines for which Trustmark holds first lien		59.9	%		60.7	%
Percentage of loans and lines for which Trustmark does not hold first lien		40.1	%		39.3	%

Due to the increased risk associated with second liens, loan terms and underwriting guidelines differ from those used for products secured by first liens.  Loan amounts and loan-to-value ratios are limited and are lower for second liens than first liens.  Also, interest rates and maximum amortization periods are adjusted accordingly.  In addition, regardless of lien position, the passing credit score for approval of all home equity lines of credit is higher than that of term loans.  The allowance for loan losses, LHFI is also reflective of the increased risk related to second liens through application of a greater loss factor to this portion of the portfolio.

The following tables provide information regarding the interest rate terms of Trustmark’s LHFI as of September 30, 2018 and December 31, 2017 ($ in thousands).  Trustmark’s variable rate LHFI are based primarily on various prime and LIBOR interest rate bases.

	September 30, 2018
	Fixed		Variable		Total
Loans secured by real estate:
Construction, land development and other land	$	227,026	$	804,465	$	1,031,491
Secured by 1- 4 family residential properties		1,037,935		763,094		1,801,029
Secured by nonfarm, nonresidential properties		1,414,322		879,967		2,294,289
Other real estate secured		169,606		284,081		453,687
Commercial and industrial loans		535,925		1,029,997		1,565,922
Consumer loans		164,069		18,640		182,709
State and other political subdivision loans		850,908		78,270		929,178
Other loans		178,715		310,010		488,725
LHFI	$	4,578,506	$	4,168,524	$	8,747,030

	December 31, 2017
	Fixed		Variable		Total
Loans secured by real estate:
Construction, land development and other land	$	253,744	$	733,880	$	987,624
Secured by 1- 4 family residential properties		1,632,853		42,458		1,675,311
Secured by nonfarm, nonresidential properties		1,385,217		808,606		2,193,823
Other real estate secured		153,851		364,105		517,956
Commercial and industrial loans		522,613		1,047,732		1,570,345
Consumer loans		151,685		20,233		171,918
State and other political subdivision loans		863,262		89,221		952,483
Other loans		238,315		262,192		500,507
LHFI	$	5,201,540	$	3,368,427	$	8,569,967

In the following tables, LHFI reported by region (along with related nonperforming assets and net charge-offs) are associated with location of origination except for loans secured by 1-4 family residential properties (representing traditional mortgages), credit cards and indirect consumer auto loans.  These loans are included in the Mississippi Region because they are centrally analyzed and approved as part of a specific line of business located at Trustmark’s headquarters in Jackson, Mississippi.

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The following table presents the LHFI composition by region at September 30, 2018 and reflects a diversified mix of loans by region ($ in thousands):

	September 30, 2018
LHFI Composition by Region	Total		Alabama		Florida		Mississippi		Tennessee		Texas
Loans secured by real estate:
Construction, land development and other land	$	1,031,491	$	335,338	$	79,432	$	333,614	$	19,974	$	263,133
Secured by 1-4 family residential properties		1,801,029		113,369		48,527		1,539,417		86,379		13,337
Secured by nonfarm, nonresidential properties		2,294,289		517,795		222,194		913,676		157,188		483,436
Other real estate secured		453,687		70,306		11,603		215,792		11,070		144,916
Commercial and industrial loans		1,565,922		197,278		17,065		783,217		378,433		189,929
Consumer loans		182,709		23,823		5,473		130,527		20,095		2,791
State and other political subdivision loans		929,178		87,807		42,144		586,996		28,355		183,876
Other loans		488,725		77,492		16,291		318,691		38,273		37,978
LHFI	$	8,747,030	$	1,423,208	$	442,729	$	4,821,930	$	739,767	$	1,319,396
Construction, Land Development and Other Land Loans by Region
Lots	$	62,886	$	14,899	$	19,168	$	23,758	$	1,508	$	3,553
Development		58,520		7,621		7,663		29,243		680		13,313
Unimproved land		88,965		13,869		15,305		28,918		13,297		17,576
1-4 family construction		211,270		81,997		12,567		82,019		2,024		32,663
Other construction		609,850		216,952		24,729		169,676		2,465		196,028
Construction, land development and other    land loans	$	1,031,491	$	335,338	$	79,432	$	333,614	$	19,974	$	263,133
Loans Secured by Nonfarm, Nonresidential Properties by Region
Non-owner occupied:
Retail	$	391,342	$	139,168	$	54,539	$	100,954	$	24,585	$	72,096
Office		142,098		70,872		21,027		—		7,988		42,211
Nursing homes/senior living		205,700		33,075		—		166,435		6,190		—
Hotel/motel		255,710		74,450		51,916		53,097		34,156		42,091
Mini-storage		121,764		12,665		6,198		36,264		615		66,022
Industrial		102,793		20,577		7,081		17,630		2,259		55,246
Health care		52,464		22,594		748		26,310		—		2,812
Convenience stores		31,322		2,766		116		17,028		764		10,648
Other		149,606		5,297		8,530		87,415		22,425		25,939
Total non-owner occupied loans		1,452,799		381,464		150,155		505,133		98,982		317,065
Owner-occupied:
Office		164,111		29,926		28,039		60,073		6,588		39,485
Churches		92,797		19,036		6,656		45,949		16,262		4,894
Industrial warehouses		140,636		11,390		3,337		54,987		14,559		56,363
Health care		109,006		21,652		6,465		63,265		2,827		14,797
Convenience stores		115,278		14,613		12,956		63,379		1,229		23,101
Retail		86,833		24,035		7,746		33,231		3,686		18,135
Restaurants		35,360		2,712		1,529		27,224		1,832		2,063
Auto dealerships		31,240		8,480		149		13,600		9,011		—
Other		66,229		4,487		5,162		46,835		2,212		7,533
Total owner-occupied loans		841,490		136,331		72,039		408,543		58,206		166,371
Loans secured by nonfarm, nonresidential    properties	$	2,294,289	$	517,795	$	222,194	$	913,676	$	157,188	$	483,436

Allowance for Loan Losses, LHFI

Trustmark’s allowance for loan loss methodology is based on guidance provided in SEC Staff Accounting Bulletin (SAB) No. 102, “Selected Loan Loss Allowance Methodology and Documentation Issues,” as well as other regulatory guidance.  Trustmark’s allowance has been developed using different factors to estimate losses based upon specific evaluation of identified individual LHFI considered impaired, estimated identified losses on various pools of LHFI and/or groups of risk rated LHFI with common risk

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characteristics and other external and internal factors of estimated probable losses based on other facts and circumstances.  The level of Trustmark’s allowance reflects Management’s continuing evaluation of specific credit risks, loan loss experience, current loan portfolio growth, present economic, political and regulatory conditions and unidentified losses inherent in the current loan portfolio.  For a complete description of Trustmark’s allowance for loan loss methodology and the quantitative and qualitative factors included in the valuation allowance, please see Note 4 – Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI included in Part I. Item 1. – Financial Statements of this report.

At September 30, 2018, the allowance for loan losses, LHFI, was $88.9 million, an increase of $12.1 million, or 15.8%, when compared with December 31, 2017.  The increase in the allowance for loan loss during the first nine months of 2018 was principally due to an increase in specific reserves for new and existing impaired LHFI.  Total allowance coverage of nonperforming LHFI, excluding specifically reviewed impaired LHFI, increased to 339.79% at September 30, 2018, compared to 320.84% at December 31, 2017 principally due to the decrease in the nonperforming LHFI, excluding specifically reviewed impaired LHFI, partially offset by a decrease in the allowance for loan losses, LHFI, excluding specific reserves for impaired LHFI.  Allocation of Trustmark’s $88.9 million allowance for loan losses, LHFI, represented 1.13% of commercial LHFI and 0.63% of consumer and home mortgage LHFI, resulting in an allowance to total LHFI of 1.02% as of September 30, 2018.  This compares with an allowance to total LHFI of 0.90% at December 31, 2017, which was allocated to commercial LHFI at 0.95% and to consumer and mortgage LHFI at 0.68%.

The following tables present changes in the allowance for loan losses, LHFI by geographic market region for the periods presented ($ in thousands):

	Three Months Ended September 30, 2018
	Total			Alabama			Florida			Mississippi			Tennessee			Texas
Balance at beginning of period	$	83,566		$	11,329		$	3,009		$	47,848		$	5,062		$	16,318
Transfers (1)		772			—			—			772			—			—
LHFI charged-off		(7,017	)		(301	)		(48	)		(6,380	)		(247	)		(41	)
Recoveries		2,880			103			634			1,703			343			97
Net (charge-offs) recoveries		(4,137	)		(198	)		586			(4,677	)		96			56
Provision for loan losses, LHFI		8,673			593			(431	)		(1,630	)		8,100			2,041
Balance at end of period	$	88,874		$	11,724		$	3,164		$	42,313		$	13,258		$	18,415

	Three Months Ended September 30, 2017
	Total			Alabama			Florida			Mississippi			Tennessee			Texas
Balance at beginning of period	$	76,184		$	9,206		$	3,056		$	45,312		$	6,102		$	12,508
LHFI charged-off		(2,752	)		(400	)		(102	)		(1,954	)		(281	)		(15	)
Recoveries		3,228			86			898			1,965			196			83
Net (charge-offs) recoveries		476			(314	)		796			11			(85	)		68
Provision for loan losses, LHFI		3,672			1,218			(744	)		1,860			(72	)		1,410
Balance at end of period	$	80,332		$	10,110		$	3,108		$	47,183		$	5,945		$	13,986

	Nine Months Ended September 30, 2018
	Total			Alabama			Florida			Mississippi			Tennessee			Texas
Balance at beginning of period	$	76,733		$	10,473		$	2,819		$	44,388		$	5,427		$	13,626
Transfers (2)		1,554			—			782			772			—			—
LHFI charged-off		(12,980	)		(722	)		(136	)		(11,233	)		(803	)		(86	)
Recoveries		7,766			328			1,804			4,584			720			330
Net (charge-offs) recoveries		(5,214	)		(394	)		1,668			(6,649	)		(83	)		244
Provision for loan losses, LHFI		15,801			1,645			(2,105	)		3,802			7,914			4,545
Balance at end of period	$	88,874		$	11,724		$	3,164		$	42,313		$	13,258		$	18,415

	Nine Months Ended September 30, 2017
	Total			Alabama			Florida			Mississippi			Tennessee			Texas
Balance at beginning of period	$	71,265		$	7,188		$	2,900		$	43,010		$	5,801		$	12,366
LHFI charged-off		(9,072	)		(706	)		(288	)		(7,064	)		(908	)		(106	)
Recoveries		8,784			355			2,212			5,283			594			340
Net (charge-offs) recoveries		(288	)		(351	)		1,924			(1,781	)		(314	)		234
Provision for loan losses, LHFI		9,355			3,273			(1,716	)		5,954			458			1,386
Balance at end of period	$	80,332		$	10,110		$	3,108		$	47,183		$	5,945		$	13,986

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(1) The allowance for loan losses balance related to the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017, which were reclassified from acquired impaired loans to LHFI during the third quarter of 2018.

(2) The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger on March 16, 2012, which were reclassified from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017, which were reclassified from acquired impaired loans to LHFI during the third quarter of 2018.

Charge-offs exceeded recoveries for the three and nine months ended September 30, 2018 resulting in net charge-offs of $4.1 million and $5.2 million, respectively, compared to net recoveries of $476 thousand and net charge-offs of $288 thousand for the same time periods in 2017.  The increase in net charge-offs for the three and nine months ended September 30, 2018 compared to the same time periods in 2017 was primarily the result of two large substandard commercial credits in the Mississippi market region that were charged off during 2018.

The provision for loan losses, LHFI represents the change in the estimated loan losses determined utilizing Trustmark’s allowance for loan loss methodology net of charge-offs and recoveries of LHFI charged against net income.  The provision for loan losses, LHFI, for the three and nine months ended September 30, 2018 totaled 0.39% and 0.24% of average loans (LHFS and LHFI), respectively, compared with 0.17% and 0.15% of average loans (LHFS and LHFI), respectively, for the same time periods in 2017.  The increase in the provision for loan losses, LHFI when the three and nine months ended September 30, 2018 are compared to the same time periods in 2017 was primarily due to increases in the amount of provision expense related to new and existing impaired LHFI and net charge-offs partially offset by declines in provision expense related to changes in quantitative reserve factors and loan growth as well as the specific reserves recorded during the third quarter of 2017 related to Hurricane Harvey.

Nonperforming Assets, Excluding Acquired Loans

The table below provides the components of nonperforming assets, excluding acquired loans, by geographic market region at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018			December 31, 2017
Nonaccrual LHFI
Alabama	$	3,953		$	3,083
Florida		1,180			3,034
Mississippi		41,351			49,129
Tennessee		13,195			4,436
Texas		8,157			7,893
Total nonaccrual LHFI		67,836			67,575
Other real estate
Alabama		7,526			11,714
Florida		8,931			13,937
Mississippi		18,191			14,260
Tennessee		1,083			2,535
Texas		744			782
Total other real estate		36,475			43,228
Total nonperforming assets	$	104,311		$	110,803
Nonperforming assets/total loans (LHFI and LHFS) and ORE		1.16	%		1.26	%
Loans past due 90 days or more
LHFI	$	726		$	2,171
LHFS - Guaranteed GNMA serviced loans (1)	$	34,115		$	35,544

(1) No obligation to repurchase

See the previous discussion of LHFS for more information on Trustmark’s serviced GNMA loans eligible for repurchase and the impact of Trustmark’s repurchases of delinquent mortgage loans under the GNMA optional repurchase program.

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Nonaccrual LHFI

At September 30, 2018, nonaccrual LHFI totaled $67.8 million, or 0.76% of total LHFS and LHFI, reflecting an increase of $261 thousand relative to December 31, 2017.  The slight increase in nonaccrual LHFI during the first nine months of 2018 was principally due to one healthcare related commercial credit in the Mississippi market region and one shared national credit in the limited-service restaurant industry in the Tennessee market region moving to nonaccrual status, which were substantially offset by payments, foreclosure, and charge-offs on nonaccrual loans, primarily related to two nonaccrual commercial credits in the Mississippi market region and one nonaccrual commercial credit in the Florida market region.  As of September 30, 2018, nonaccrual energy-related LHFI totaled $13.1 million and represented 7.1% of Trustmark’s total energy-related portfolio, compared to $22.0 million, or 9.7% of Trustmark’s total energy-related portfolio, as of December 31, 2017.  For additional information regarding nonaccrual LHFI, see the section captioned “Nonaccrual and Past Due LHFI” included in Note 4 – Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI in Part I. Item 1. – Financial Statements of this report.

Other Real Estate

Other real estate at September 30, 2018 decreased $6.8 million, or 15.6%, when compared with December 31, 2017.  The decrease in other real estate was primarily due to properties sold in Trustmark’s Florida, Mississippi, Alabama and Tennessee market regions partially offset by new properties foreclosed in the Mississippi and Florida market regions.

As of September 30, 2018, Trustmark had no covered other real estate.  The remaining loss-share agreement with the Federal Deposit Insurance Corporation (FDIC), which covers loans secured by 1-4 family residential properties, will expire in 2021.  Should a loan covered by the remaining loss-share agreement be foreclosed, the related property will be classified as covered other real estate.

The following tables illustrate changes in other real estate by geographic market region for the periods presented ($ in thousands):

	Three Months Ended September 30, 2018
	Total			Alabama			Florida			Mississippi			Tennessee			Texas
Balance at beginning of period	$	39,667		$	8,290		$	9,789		$	19,358		$	1,486		$	744
Additions		3,284			161			1,967			774			382			—
Disposals		(5,584	)		(938	)		(2,825	)		(1,064	)		(757	)		—
Write-downs		(892	)		13			—			(877	)		(28	)		—
Balance at end of period	$	36,475		$	7,526		$	8,931		$	18,191		$	1,083		$	744

	Three Months Ended September 30, 2017
	Total			Alabama			Florida			Mississippi			Tennessee			Texas
Balance at beginning of period	$	49,958		$	13,301		$	17,377		$	14,377		$	3,363		$	1,540
Additions		2,983			167			—			2,690			126			—
Disposals		(4,153	)		(626	)		(1,172	)		(1,583	)		(772	)		—
Write-downs		(432	)		(116	)		(105	)		(165	)		(46	)		—
Balance at end of period	$	48,356		$	12,726		$	16,100		$	15,319		$	2,671		$	1,540

	Nine Months Ended September 30, 2018
	Total			Alabama			Florida			Mississippi			Tennessee			Texas
Balance at beginning of period	$	43,228		$	11,714		$	13,937		$	14,260		$	2,535		$	782
Additions		10,368			380			2,740			6,866			382			—
Disposals		(15,264	)		(2,894	)		(7,690	)		(2,935	)		(1,745	)		—
Write-downs		(1,857	)		(620	)		(56	)		(1,054	)		(89	)		(38	)
Adjustments		—			(1,054	)		—			1,054			—			—
Balance at end of period	$	36,475		$	7,526		$	8,931		$	18,191		$	1,083		$	744

	Nine Months Ended September 30, 2017
	Total			Alabama			Florida			Mississippi			Tennessee			Texas
Balance at beginning of period	$	62,051		$	15,989		$	22,582		$	15,646		$	6,183		$	1,651
Additions (1)		7,481			838			344			4,784			732			783
Disposals		(18,583	)		(3,160	)		(5,702	)		(4,496	)		(4,331	)		(894	)
Write-downs		(2,593	)		(941	)		(1,124	)		(615	)		87			—
Balance at end of period	$	48,356		$	12,726		$	16,100		$	15,319		$	2,671		$	1,540

(1) Includes $475 thousand of other real estate acquired in the Reliance merger on April 7, 2017.

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Other real estate is revalued on an annual basis or more often if market conditions necessitate.  Subsequent to foreclosure, losses on the periodic revaluation of the property are charged against the reserve for other real estate write-downs or net income in other real estate expense, if a reserve does not exist.  Write-downs of other real estate decreased $736 thousand, or 28.4%, when the first nine months of 2018 is compared to the same time period in 2017, primarily due to a $1.1 million decrease in write-downs of other real estate properties in the Florida market region reflecting the increase in the amount of properties sold in this market region for the respective periods.

For additional information regarding other real estate, including covered other real estate, see Note 7 – Other Real Estate included in Part I. Item 1. – Financial Statements of this report.

Acquired Loans

Trustmark’s loss-share agreement with the FDIC covering the acquired covered loans secured by 1-4 family residential properties will expire in 2021.

As of September 30, 2018 and December 31, 2017, acquired loans consisted of the following ($ in thousands):

	September 30, 2018		December 31, 2017
Loans secured by real estate:
Construction, land development and other land	$	6,657	$	23,586
Secured by 1-4 family residential properties		25,274		61,751
Secured by nonfarm, nonresidential properties		66,865		114,694
Other real estate secured		8,507		16,746
Commercial and industrial loans		16,610		31,506
Consumer loans		1,514		2,600
Other loans		7,188		10,634
Acquired loans		132,615		261,517
Less allowance for loan losses, acquired loans		1,714		4,079
Net acquired loans	$	130,901	$	257,438

During the first nine months of 2018, acquired loans decreased $128.9 million, or 49.3%, compared to balances at December 31, 2017, primarily due to pay-downs and pay-offs of these acquired loans and acquired loans that were transferred to LHFI.  Based on the most recent re-estimation of expected cash flows, Trustmark anticipates that acquired loan balances, excluding any settlement of debt, will decline approximately $20.0 million to $30.0 million during the fourth quarter of 2018.  Trustmark also expects the yield on the acquired loans, excluding any recoveries, to be approximately 6.5% to 7.5% for the fourth quarter of 2018.  As the balances in the acquired loan portfolio continue to run-off, Trustmark expects that the income benefit provided by this portfolio will also decline. 

For additional information regarding acquired loans, including changes in the net carrying value, see Note 5 – Acquired Loans included in Part I. Item 1. – Financial Statements of this report.

Deposits

Trustmark’s deposits are its primary source of funding and consist of core deposits from the communities Trustmark serves.  Deposits include interest-bearing and noninterest-bearing demand accounts, savings, money market, certificates of deposit and individual retirement accounts.  Total deposits were $10.957 billion at September 30, 2018 compared to $10.578 billion at December 31, 2017, an increase of $379.4 million, or 3.6%.  During the first nine months of 2018, noninterest-bearing deposits decreased $191.5 million, or 6.4%, as a result of declines in all categories of noninterest-bearing deposit accounts, while interest-bearing deposits increased $570.9 million, or 7.5%, primarily due to growth in public and commercial interest checking accounts, commercial and consumer money market deposit accounts and consumer and public certificates of deposits, reflecting increases in interest rates in general.

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Short-term Borrowings

Trustmark uses short-term borrowings to fund growth of earning assets in excess of deposit growth.  Short-term borrowings consist primarily of federal funds purchased, securities sold under repurchase agreements, short-term FHLB advances and GNMA optional repurchase loans.  Short-term borrowings totaled $676.9 million at September 30, 2018, a decrease of $764.0 million, or 53.0%, when compared with $1.441 billion at December 31, 2017, primarily due to decrease in the outstanding balance of short-term FHLB advances, as maturing short-term advances with the FHLB of Dallas were not replaced as a result of increases in interest rates and changes in Trustmark’s funding needs which resulted from increased liquidity due to growth in deposits and securities run-off.  Other short-term borrowings decreased $781.0 million, or 80.4%, during the first nine months of 2018, primarily due to the maturity of $400.0 million in short-term FHLB advances and prepayment of $375.0 million short-term advance with the FHLB of Dallas.  Federal funds purchased and securities sold under repurchase agreements totaled $486.9 million at September 30, 2018 compared to $469.8 million at December 31, 2017, an increase of $17.0 million, or 3.6%.  Of these amounts $95.9 million and $139.8 million, respectively, represented customer related transactions, such as commercial sweep repurchase balances.  Excluding customer related transactions, federal funds purchased totaled $391.0 million at September 30, 2018, an increase of $61.0 million, or 18.5%, when compared with $330.0 million at December 31, 2017.

Legal Environment

Information required in this section is set forth under the heading “Legal Proceedings” of Note 13 – Contingencies included in Part I. Item 1. – Financial Statements of this report.

Off-Balance Sheet Arrangements

Information required in this section is set forth under the heading “Lending Related” of Note 13 – Contingencies included in Part I. Item 1. – Financial Statements of this report.

Contractual Obligations

Payments due from Trustmark under specified long-term and certain other binding contractual obligations were scheduled in our Annual Report on Form 10-K for the year ended December 31, 2017.  The most significant obligations, other than obligations under deposit contracts and short-term borrowings, were for operating leases for banking facilities.  There have been no material changes in Trustmark’s contractual obligations since year-end.

Capital Resources

At September 30, 2018, Trustmark’s total shareholders’ equity was $1.600 billion, an increase of $27.9 million, or 1.8%, when compared to December 31, 2017.  During the first nine months of 2018, shareholders’ equity increased primarily as a result of net income of $112.9 million, partially offset by common stock dividends of $47.0 million and a decrease in the fair market value of securities available for sale of $35.2 million, net of tax.  Trustmark utilizes a capital model in order to provide Management with a monthly tool for analyzing changes in its strategic capital ratios.  This allows Management to hold sufficient capital to provide for growth opportunities and protect the balance sheet against sudden adverse market conditions, while maintaining an attractive return on equity to shareholders.

Regulatory Capital

Trustmark and TNB are subject to minimum risk-based capital and leverage capital requirements, as described in the section captioned “Capital Adequacy” included in Part I. Item 1. – Business of Trustmark’s 2017 Annual Report on Form 10-K, which are administered by the federal bank regulatory agencies.  These capital requirements, as defined by federal regulations, involve quantitative and qualitative measures of assets, liabilities and certain off-balance sheet instruments.  Trustmark’s and TNB’s minimum risk-based capital requirements include the phased in capital conservation buffer of 1.875% at September 30, 2018 and 1.250% at December 31, 2017.  AOCL is not included in computing regulatory capital.  Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements of Trustmark and TNB and limit Trustmark’s and TNB’s ability to pay dividends.  As of September 30, 2018, Trustmark and TNB exceeded all applicable minimum capital standards.  In addition, Trustmark and TNB met applicable regulatory guidelines to be considered well-capitalized at September 30, 2018.  To be categorized in this manner, Trustmark and TNB maintained minimum common equity Tier 1 risk-based capital, Tier 1 risk-based capital, total risk-based capital and Tier 1 leverage ratios, and were not subject to any written agreement, order or capital directive, or prompt corrective action directive issued by their primary federal regulators to meet and maintain a specific capital level for any capital measures.  There are no significant conditions or events that have occurred since September 30, 2018, which Management believes have affected Trustmark’s or TNB’s present classification.

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In 2006, Trustmark enhanced its capital structure with the issuance of trust preferred securities.  For regulatory capital purposes, the trust preferred securities currently qualify as Tier 1 capital.  Trustmark intends to continue to utilize $60.0 million in trust preferred securities issued by Trustmark Preferred Capital Trust I (the Trust) as Tier 1 capital up to the regulatory limit, as permitted by the grandfather provision in the Dodd-Frank Act and the Basel III Final Rule.

Refer to the section captioned “Regulatory Capital” included in Note 16 – Shareholders’ Equity in Part I. Item 1. – Financial Statements of this report for an illustration of Trustmark’s and TNB’s actual regulatory capital amounts and ratios under regulatory capital standards in effect at September 30, 2018 and December 31, 2017.

Dividends on Common Stock

Dividends per common share for the nine months ended September 30, 2018 and 2017 were $0.69.  Trustmark’s indicated dividend for 2018 is $0.92 per common share, which is the same as dividends per common share in 2017.

Liquidity

Liquidity is the ability to ensure that sufficient cash flow and liquid assets are available to satisfy current and future financial obligations, including demand for loans and deposit withdrawals, funding operating costs and other corporate purposes.  Consistent cash flows from operations and adequate capital provide internally generated liquidity.  Furthermore, Management maintains funding capacity from a variety of external sources to meet daily funding needs, such as those required to meet deposit withdrawals, loan disbursements and security settlements.  Liquidity strategy also includes the use of wholesale funding sources to provide for the seasonal fluctuations of deposit and loan demand and the cyclical fluctuations of the economy that impact the availability of funds.  Management keeps excess funding capacity available to meet potential demands associated with adverse circumstances.

The asset side of the balance sheet provides liquidity primarily through maturities and cash flows from loans and securities as well as the ability to sell certain loans and securities while the liability portion of the balance sheet provides liquidity primarily through noninterest and interest-bearing deposits.  Trustmark utilizes federal funds purchased, FHLB advances, securities sold under repurchase agreements as well as the Federal Reserve Discount Window (Discount Window) and, on a limited basis as discussed below, brokered deposits to provide additional liquidity.  Access to these additional sources represents Trustmark’s incremental borrowing capacity.

Deposit accounts represent Trustmark’s largest funding source.  Average deposits totaled to $10.959 billion for the first nine months of 2018 and represented approximately 81.1% of average liabilities and shareholders’ equity, compared to average deposits of $10.147 billion, which represented 74.2% of average liabilities and shareholders’ equity for the first nine months of 2017.

Trustmark utilizes a limited amount of brokered deposits to supplement other wholesale funding sources.  At September 30, 2018, brokered sweep Money Market Deposit Account (MMDA) deposits totaled $15.2 million compared to $38.6 million at December 31, 2017.  At both September 30, 2018 and December 31, 2017, Trustmark had no outstanding brokered CDs.

At September 30, 2018, Trustmark had $391.0 million in upstream federal funds purchased, compared to $330.0 million at December 31, 2017.  Trustmark maintains adequate federal funds lines to provide sufficient short-term liquidity.  

Trustmark maintains a relationship with the FHLB of Dallas, which provided $125.0 million of outstanding short-term advances and no outstanding long-term advances at September 30, 2018, compared to $900.0 million of outstanding short-term advances and no outstanding long-term advances at December 31, 2017.  Under the existing borrowing agreement, Trustmark had sufficient qualifying collateral to increase FHLB advances with the FHLB of Dallas by $2.614 billion at September 30, 2018.  

In addition, at September 30, 2018, Trustmark had $896 thousand in long-term FHLB advances outstanding with the FHLB of Atlanta, which were acquired in the BancTrust merger, compared to $958 thousand at December 31, 2017.  Trustmark has non-member status and thus no additional borrowing capacity with the FHLB of Atlanta.

Additionally, Trustmark has the ability to leverage its unencumbered investment securities as collateral.  At September 30, 2018, Trustmark had approximately $613.3 million available in unencumbered agency securities compared to $1.299 billion at December 31, 2017.  The decrease was primarily due to Management’s decision to suspend reinvestment of security cash flows during the fourth quarter of 2017 as well as increased collateral requirements due to the increase in public deposits.

Another borrowing source is the Discount Window.  At September 30, 2018, Trustmark had approximately $1.070 billion available in collateral capacity at the Discount Window primarily from pledges of commercial and industrial LHFI, compared with $1.042 billion at December 31, 2017.

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During 2006, Trustmark completed a private placement of $60.0 million of trust preferred securities through a newly formed Delaware trust affiliate, the Trust.  The trust preferred securities mature September 30, 2036 and are redeemable at Trustmark’s option.  The proceeds from the sale of the trust preferred securities were used by the Trust to purchase $61.9 million in aggregate principal amount of Trustmark’s junior subordinated debentures.

The Board of Directors of Trustmark currently has the authority to issue up to 20.0 million preferred shares with no par value.  The ability to issue preferred shares in the future will provide Trustmark with additional financial and management flexibility for general corporate and acquisition purposes.  At September 30, 2018, Trustmark had no shares of preferred stock issued and outstanding.

Liquidity position and strategy are reviewed regularly by Management and continuously adjusted in relationship to Trustmark’s overall strategy.  Management believes that Trustmark has sufficient liquidity and capital resources to meet presently known cash flow requirements arising from ongoing business transactions.

Asset/Liability Management

Overview

Market risk reflects the potential risk of loss arising from adverse changes in interest rates and market prices.  Trustmark has risk management policies to monitor and limit exposure to market risk.  Trustmark’s primary market risk is interest rate risk created by core banking activities.  Interest rate risk is the potential variability of the income generated by Trustmark’s financial products or services, which results from changes in various market interest rates.  Market rate changes may take the form of absolute shifts, variances in the relationships between different rates and changes in the shape or slope of the interest rate term structure.

Management continually develops and applies cost-effective strategies to manage these risks.  Management’s Asset/Liability Committee sets the day-to-day operating guidelines, approves strategies affecting net interest income and coordinates activities within policy limits established by the Board of Directors of Trustmark.  A key objective of the asset/liability management program is to quantify, monitor and manage interest rate risk and to assist Management in maintaining stability in the net interest margin under varying interest rate environments.

Derivatives

Trustmark uses financial derivatives for management of interest rate risk.  Management’s Asset/Liability Committee, in its oversight role for the management of interest rate risk, approves the use of derivatives in balance sheet hedging strategies.  The most common derivatives employed by Trustmark are interest rate lock commitments, forward contracts (both futures contracts and options on futures contracts), interest rate swaps, interest rate caps and interest rate floors.  As a general matter, the values of these instruments are designed to be inversely related to the values of the assets that they hedge (i.e., if the value of the hedged asset falls, the value of the related hedge rises).  In addition, Trustmark has entered into derivatives contracts as counterparty to one or more customers in connection with loans extended to those customers.  These transactions are designed to hedge interest rate, currency or other exposures of the customers and are not entered into by Trustmark for speculative purposes.  Increased federal regulation of the derivatives markets may increase the cost to Trustmark to administer derivatives programs.

On April 4, 2013, Trustmark entered into a forward interest rate swap contract on junior subordinated debentures with a total notional amount of $60.0 million.  The interest rate swap contract was designated as a derivative instrument in a cash flow hedge under FASB ASC Topic 815, with the objective of protecting the quarterly interest payments on Trustmark’s $60.0 million of junior subordinated debentures issued to the Trust throughout the five-year period beginning December 31, 2014 and ending December 31, 2019 from the risk of variability of those payments resulting from changes in the three-month LIBOR interest rate.  Under the swap, which became effective on December 31, 2014, Trustmark pays a fixed interest rate of 1.66% per annum and receives a variable interest rate based on three-month LIBOR on a total notional amount of $60.0 million, with quarterly net settlements.

No ineffectiveness related to the interest rate swap designated as a cash flow hedge was recognized in the consolidated statements of income during the nine months ended September 30, 2018 and 2017.  The accumulated net after-tax gain related to the effective cash flow hedge included in AOCL totaled $639 thousand September 30, 2018 compared to a net after-tax gain of $278 thousand at December 31, 2017.  Amounts reported in AOCL related to this derivative are reclassified to other interest expense as interest payments are made on Trustmark’s variable rate junior subordinated debentures.  During the next twelve months, Trustmark estimates that $644 thousand will be reclassified as a decrease to other interest expense.

As part of Trustmark’s risk management strategy in the mortgage banking business, various derivative instruments such as interest rate lock commitments and forward sales contracts are utilized.  Rate lock commitments are residential mortgage loan commitments with customers, which guarantee a specified interest rate for a specified period of time.  Trustmark’s obligations under forward

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contracts consist of commitments to deliver mortgage loans, originated and/or purchased, in the secondary market at a future date.  The gross notional amount of Trustmark’s off-balance sheet obligations under these derivative instruments totaled $302.3 million at September 30, 2018, with a positive valuation adjustment of $1.8 million, compared to $265.0 million, with a positive valuation adjustment of $663 thousand at December 31, 2017.

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that economically hedges changes in fair value of the mortgage servicing rights (MSR) attributable to interest rates.  These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under GAAP.  The total notional amount of these derivative instruments were $252.0 million at September 30, 2018 compared to $349.0 million at December 31, 2017.  These exchange-traded derivative instruments are accounted for at fair value with changes in the fair value recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR.  The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates.  Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions.  The impact of this strategy resulted in a net positive ineffectiveness of $72 thousand and a net negative ineffectiveness of $2.6 million for the three months ended September 30, 2018 and 2017, respectively.  For the nine months ended September 30, 2018 and 2017, the impact was a net positive ineffectiveness of $3.5 million and $1.0 million, respectively.

Trustmark offers certain interest rate derivatives products directly to qualified commercial lending clients seeking to manage their interest rate risk under loans they have entered into with TNB.  Trustmark economically hedges interest rate swap transactions executed with commercial lending clients by entering into offsetting interest rate swap transactions with institutional derivatives market participants.  Derivatives transactions executed as part of this program are not designated as qualifying hedging relationships under GAAP and are, therefore, carried on Trustmark’s financial statements at fair value with the change in fair value recorded in noninterest income in bank card and other fees.  Because these derivatives have mirror-image contractual terms, in addition to collateral provisions which mitigate the impact of non-performance risk, the changes in fair value are expected to substantially offset.  As of September 30, 2018, Trustmark had interest rate swaps with an aggregate notional amount of $410.2 million related to this program, compared to $351.9 million as of December 31, 2017.

Trustmark has agreements with its financial institution counterparties that contain provisions where if Trustmark defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Trustmark could also be deemed to be in default on its derivatives obligations.

As of September 30, 2018, Trustmark had no termination value of interest rate swaps in a liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements compared to $80 thousand at December 31, 2017.  As of September 30, 2018, Trustmark had no posted collateral against its obligations because of negotiated thresholds and minimum transfer amounts under these agreements.  If Trustmark had breached any of these triggering provisions at September 30, 2018, it could have been required to settle its obligations under the agreements at the termination value (which is expected to approximate fair market value).

Credit risk participation agreements arise when Trustmark contracts with other financial institutions, as a guarantor or beneficiary, to share credit risk associated with certain interest rate swaps.  These agreements provide for reimbursement of losses resulting from a third party default on the underlying swap.  At both September 30, 2018 and December 31, 2017, Trustmark had entered into two risk participation agreements as a beneficiary with an aggregate notional amount of $13.2 million and $13.7 million, respectively.  At September 30, 2018, Trustmark had entered into seven risk participation agreements as a guarantor with an aggregate notional amount of $40.3 million, compared to six risk participation agreements as a guarantor with an aggregate notional amount of $37.1 million at December 31, 2017.  The aggregate fair values of these risk participation agreements were immaterial at September 30, 2018 and December 31, 2017.

Trustmark’s participation in the derivatives markets is subject to increased federal regulation of these markets.  Trustmark believes that it may continue to use financial derivatives to manage interest rate risk and also to offer derivatives products to certain qualified commercial lending clients in compliance with the Volcker Rule.  However, the increased federal regulation of the derivatives markets has increased the cost to Trustmark of administering its derivatives programs.  Some of these costs (particularly compliance costs related to the Volcker Rule and other federal regulations) are expected to recur in the future.

Market/Interest Rate Risk Management

The primary purpose in managing interest rate risk is to invest capital effectively and preserve the value created by the core banking business.  This is accomplished through the development and implementation of lending, funding, pricing and hedging strategies

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designed to maximize net interest income performance under varying interest rate environments subject to specific liquidity and interest rate risk guidelines.

Financial simulation models are the primary tools used by Management’s Asset/Liability Committee to measure interest rate exposure.  Using a wide range of scenarios, Management is provided with extensive information on the potential impact on net interest income caused by changes in interest rates.  Models are structured to simulate cash flows and accrual characteristics of Trustmark’s balance sheet.  Assumptions are made about the direction and volatility of interest rates, the slope of the yield curve and the changing composition of Trustmark’s balance sheet, resulting from both strategic plans and customer behavior.  In addition, the model incorporates Management’s assumptions and expectations regarding such factors as loan and deposit growth, pricing, prepayment speeds and spreads between interest rates.

Based on the results of the simulation models using static balances, the table below summarizes the effect various one-year interest rate shift scenarios would have on net interest income compared to a base case, flat scenario at September 30, 2018 and 2017.  At September 30, 2018 and 2017, the impact of a 200 basis point drop scenario was not calculated due to the low interest rate environment.

	Estimated % Change in Net Interest Income
Change in Interest Rates	2018			2017
+200 basis points		-0.8	%		-2.4	%
+100 basis points		-0.4	%		-1.4	%
-100 basis points		-1.7	%		-5.3	%

As shown in the table above, the interest rate shocks for the first nine months of 2018 illustrate little change in net interest income in rising rate scenarios while displaying modest exposure to a falling rate environment.  The exposure to falling rates is primarily due to a downward repricing of various earning assets with minimal contribution from liabilities given the already low cost of deposits in the base scenario.  Management cannot provide any assurance about the actual effect of changes in interest rates on net interest income.  The estimates provided do not include the effects of possible strategic changes in the balances of various assets and liabilities throughout 2018 or additional actions Trustmark could undertake in response to changes in interest rates.  Management will continue to prudently manage the balance sheet in an effort to control interest rate risk and maintain profitability over the long term.

Another component of interest rate risk management is measuring the economic value-at-risk for a given change in market interest rates.  The economic value-at-risk may indicate risks associated with longer-term balance sheet items that may not affect net interest income at risk over shorter time periods.  Trustmark uses computer-modeling techniques to determine the present value of all asset and liability cash flows (both on- and off-balance sheet), adjusted for prepayment expectations, using a market discount rate.  The economic value of equity (EVE), also known as net portfolio value, is defined as the difference between the present value of asset cash flows and the present value of liability cash flows.  The resulting change in EVE in different market rate environments, from the base case scenario, is the amount of EVE at risk from those rate environments.  The following table summarizes the effect that various interest rate shifts would have on net portfolio value at September 30, 2018 and 2017.  At September 30, 2018 and 2017, the impact of a 200 basis point drop scenario was not calculated due to the historically low interest rate environment.

	Estimated % Change in Net Portfolio Value
Change in Interest Rates	2018			2017
+200 basis points		0.7	%		4.5	%
+100 basis points		0.7	%		3.4	%
-100 basis points		-4.2	%		-10.2	%

Trustmark determines the fair value of the MSR using a valuation model administered by a third party that calculates the present value of estimated future net servicing income.  The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, discount rate, default rates, cost to service (including delinquency and foreclosure costs), escrow account earnings, contractual servicing fee income and other ancillary income such as late fees.  Management reviews all significant assumptions quarterly.  Mortgage loan prepayment speeds, a key assumption in the model, is the annual rate at which borrowers are forecasted to repay their mortgage loan principal.  The discount rate used to determine the present value of estimated future net servicing income, another key assumption in the model, is an estimate of the required rate of return investors in the market would require for an asset with similar risk.  Both assumptions can, and generally will, change as market conditions and interest rates change.

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By way of example, an increase in either the prepayment speed or discount rate assumption will result in a decrease in the fair value of the MSR, while a decrease in either assumption will result in an increase in the fair value of the MSR.  In recent years, there have been significant market-driven fluctuations in loan prepayment speeds and discount rates.  These fluctuations can be rapid and may continue to be significant.  Therefore, estimating prepayment speed and/or discount rates within ranges that market participants would use in determining the fair value of the MSR requires significant management judgment.

At September 30, 2018, the MSR fair value was $101.4 million, compared to $81.5 million at September 30, 2017.  The impact on the MSR fair value of a 10% adverse change in prepayment speed or a 100 basis point increase in discount rate at September 30, 2018, would be a decline in fair value of approximately $3.0 million and $4.2 million, respectively, compared to a decline in fair value of approximately $3.1 million and $3.0 million, respectively, at September 30, 2017.  Changes of equal magnitude in the opposite direction would produce similar increases in fair value in the respective amounts.

Critical Accounting Policies

For an overview of Trustmark’s critical accounting policies, see the section captioned “Critical Accounting Policies” included in Part II. Item 7. – Management’s Discussion and Analysis of Financial Condition and Results of Operations, of Trustmark’s 2017 Annual Report on Form 10-K.  There have been no significant changes in Trustmark’s critical accounting policies during the first nine months of 2018.

For additional information regarding Trustmark’s basis of presentation and accounting policies, see Note 1 – Business, Basis of Financial Statement Presentation and Principles of Consolidation included in Part I. Item 1. – Financial Statements of this report.

Accounting Policies Recently Adopted and Pending Accounting Pronouncements

For a complete list of recently adopted and pending accounting policies and the impact on Trustmark, see Note 20 – Accounting Policies Recently Adopted and Pending Accounting Pronouncements included in Part I. Item 1. – Financial Statements of this report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information required by this item is included in the discussion of Market/Interest Rate Risk Management found in Management’s Discussion and Analysis.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out by Trustmark’s Management, with the participation of its Chief Executive Officer and Treasurer and Principal Financial Officer (Principal Financial Officer), of the effectiveness of Trustmark’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934). Based on that evaluation, the Chief Executive Officer and the Principal Financial Officer concluded that Trustmark’s disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control over Financial Reporting

There has been no change in Trustmark’s internal control over financial reporting during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, Trustmark’s internal control over financial reporting.

PART II.    OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Trustmark’s wholly-owned subsidiary, TNB, has been named as a defendant in three lawsuits related to the collapse of the Stanford Financial Group.  The first is a purported class action complaint that was filed on August 23, 2009 in the District Court of Harris County, Texas, by Peggy Roif Rotstain, Guthrie Abbott, Catherine Burnell, Steven Queyrouze, Jaime Alexis Arroyo Bornstein and Juan C. Olano (collectively, Class Plaintiffs), on behalf of themselves and all others similarly situated, naming TNB and four other financial institutions unaffiliated with Trustmark as defendants.  The complaint seeks to recover (i) alleged fraudulent transfers from each of the defendants in the amount of fees and other monies received by each defendant from entities controlled by R. Allen Stanford (collectively, the Stanford Financial Group) and (ii) damages allegedly attributable to alleged conspiracies by one or more of the defendants with the Stanford Financial Group to commit fraud and/or aid and abet fraud on the asserted grounds that defendants

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knew or should have known the Stanford Financial Group was conducting an illegal and fraudulent scheme.  Plaintiffs have demanded a jury trial.  Plaintiffs did not quantify damages.  

In November 2009, the lawsuit was removed to federal court by certain defendants and then transferred by the United States Panel on Multidistrict Litigation to federal court in the Northern District of Texas (Dallas) where multiple Stanford related matters are being consolidated for pre-trial proceedings.  In May 2010, all defendants (including TNB) filed motions to dismiss the lawsuit.  In August 2010, the court authorized and approved the formation of an Official Stanford Investors Committee (OSIC) to represent the interests of Stanford investors and, under certain circumstances, to file legal actions for the benefit of Stanford investors.  In December 2011, the OSIC filed a motion to intervene in this action.  In September 2012, the district court referred the case to a magistrate judge for hearing and determination of certain pretrial issues.  In December 2012, the court granted the OSIC’s motion to intervene, and the OSIC filed an Intervenor Complaint against one of the other defendant financial institutions.  In February 2013, the OSIC filed a second Intervenor Complaint that asserts claims against TNB and the remaining defendant financial institutions.  The OSIC seeks to recover: (i) alleged fraudulent transfers in the amount of the fees each of the defendants allegedly received from Stanford Financial Group, the profits each of the defendants allegedly made from Stanford Financial Group deposits, and other monies each of the defendants allegedly received from Stanford Financial Group; (ii) damages attributable to alleged conspiracies by each of the defendants with the Stanford Financial Group to commit fraud and/or aid and abet fraud and conversion on the asserted grounds that the defendants knew or should have known the Stanford Financial Group was conducting an illegal and fraudulent scheme; and (iii) punitive damages.  The OSIC did not quantify damages.  

In July 2013, all defendants (including TNB) filed motions to dismiss the OSIC’s claims.  In March 2015, the court entered an order authorizing the parties to conduct discovery regarding class certification, staying all other discovery and setting a deadline for the parties to complete briefing on class certification issues.  In April 2015, the court granted in part and denied in part the defendants’ motions to dismiss the Class Plaintiffs’ claims and the OSIC’s claims.  The court dismissed all of the Class Plaintiffs’ fraudulent transfer claims and dismissed certain of the OSIC’s claims.  The court denied the motions by TNB and the other financial institution defendants to dismiss the OSIC’s constructive fraudulent transfer claims.  

On June 23, 2015, the court allowed the Class Plaintiffs to file a Second Amended Class Action Complaint (SAC), which asserted new claims against TNB and certain of the other defendants for (i) aiding, abetting and participating in a fraudulent scheme, (ii) aiding, abetting and participating in violations of the Texas Securities Act, (iii) aiding, abetting and participating in breaches of fiduciary duty, (iv) aiding, abetting and participating in conversion and (v) conspiracy.  On July 14, 2015, the defendants (including TNB) filed motions to dismiss the SAC and to reconsider the court’s prior denial to dismiss the OSIC’s constructive fraudulent transfer claims against TNB and the other financial institutions that are defendants in the action.  On July 27, 2016, the court denied the motion by TNB and the other financial institution defendants to dismiss the SAC and also denied the motion by TNB and the other financial institution defendants to reconsider the court’s prior denial to dismiss the OSIC’s constructive fraudulent transfer claims.  On August 24, 2016, TNB filed its answer to the SAC.  On October 20, 2017, the OSIC filed a motion seeking an order lifting the discovery stay and establishing a trial schedule.  On November 7, 2017, the court denied the OSIC’s motion seeking class certification and designation of class representatives and counsel, finding that common issues of fact did not predominate.  The court granted the OSIC’s motion to lift the discovery stay that it had previously ordered.

The second Stanford-related lawsuit was filed on December 14, 2009 in the District Court of Ascension Parish, Louisiana, individually by Harold Jackson, Paul Blaine, Carolyn Bass Smith, Christine Nichols, and Ronald and Ramona Hebert naming TNB (misnamed as Trust National Bank) and other individuals and entities not affiliated with Trustmark as defendants.  The complaint seeks to recover the money lost by these individual plaintiffs as a result of the collapse of  the Stanford Financial Group (in addition to other damages) under various theories and causes of action, including negligence, breach of contract, breach of fiduciary duty, negligent misrepresentation, detrimental reliance, conspiracy, and violation of Louisiana’s uniform fiduciary, securities, and racketeering laws.  The complaint does not quantify the amount of money the plaintiffs seek to recover.  In January 2010, the lawsuit was removed to federal court by certain defendants and then transferred by the United States Panel on Multidistrict Litigation to federal court in the Northern District of Texas (Dallas) where multiple Stanford related matters are being consolidated for pre-trial proceedings.  On March 29, 2010, the court stayed the case.  TNB filed a motion to lift the stay, which was denied on February 28, 2012.  In September 2012, the district court referred the case to a magistrate judge for hearing and determination of certain pretrial issues.

On April 11, 2016, Trustmark learned that a third Stanford-related lawsuit had been filed on that date in the Superior Court of Justice in Ontario, Canada, by The Toronto-Dominion Bank (“TD Bank”), naming TNB and three other financial institutions not affiliated with Trustmark as defendants.  The complaint seeks a declaration specifying the degree to which each of TNB and the other defendants are liable in respect of any loss and damage for which TD Bank is found to be liable in a litigation commenced against TD Bank brought by the Joint Liquidators of Stanford International Bank Limited in the Superior Court of Justice, Commercial List in Ontario, Canada (the “Joint Liquidators’ Action”), as well as contribution and indemnity in respect of any judgment, interest and costs TD Bank is ordered to pay in the Joint Liquidators’ Action.  To date, TNB has not been served in connection with this action.

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TNB’s relationship with the Stanford Financial Group began as a result of Trustmark’s acquisition of a Houston-based bank in August 2006, and consisted of correspondent banking and other traditional banking services in the ordinary course of business.  All Stanford-related lawsuits are in pre-trial stages.

Trustmark and its subsidiaries are also parties to other lawsuits and other claims that arise in the ordinary course of business.  Some of the lawsuits assert claims related to the lending, collection, servicing, investment, trust and other business activities, and some of the lawsuits allege substantial claims for damages.

All pending legal proceedings described above are being vigorously contested.  In accordance FASB Accounting Standards Codification (ASC) Topic 450-20, “Loss Contingencies,” Trustmark will establish an accrued liability for litigation matters when those matters present loss contingencies that are both probable and reasonably estimable.  At the present time, Management believes, based on the advice of legal counsel and Management’s evaluation, that a loss in any such proceeding is not probable and reasonably estimable.  All matters will continue to be monitored for further developments that would make such loss contingency both probable and reasonably estimable.  In view of the inherent difficulty of predicting the outcome of legal proceedings, Trustmark cannot predict the eventual outcomes of the currently pending matters or the timing of their ultimate resolution.  Management currently believes, however, based upon the advice of legal counsel and Management’s evaluation and after taking into account its current insurance coverage, that the legal proceedings currently pending should not have a material adverse effect on Trustmark’s consolidated financial condition.

ITEM 1A. RISK FACTORS

There has been no material change in the risk factors previously disclosed in Trustmark’s Annual Report on Form 10-K for its fiscal year ended December 31, 2017.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On March 11, 2016, the Board of Directors of Trustmark authorized a stock repurchase program under which up to $100.0 million of Trustmark’s common shares may be acquired through March 31, 2019.  The following table provides information with respect to purchases by Trustmark or made on behalf of Trustmark of its common stock during the three months ended September 30, 2018 ($ in thousands, except per share amounts):

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan at the End of the Period
July 1, 2018 to July 31, 2018		—	$	—		—	$	91,378
August 1, 2018 to August 31, 2018		—		—		—		91,378
September 1, 2018 to September 30, 2018		—		—		—		91,378
Total		—				—

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

The exhibits listed in the Exhibit Index are filed herewith or are incorporated herein by reference.

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EXHIBIT INDEX

31-a	Certification by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31-b	Certification by Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32-a	Certification by Chief Executive Officer pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32-b	Certification by Principal Financial Officer pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	XBRL Interactive Data.

All other exhibits are omitted, as they are inapplicable or not required by the related instructions.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TRUSTMARK CORPORATION

BY:	/s/ Gerard R. Host	BY:	/s/ Louis E. Greer
	Gerard R. Host		Louis E. Greer
	President and Chief Executive Officer		Treasurer, Principal Financial Officer and
			Principal Accounting Officer
DATE:	November 6, 2018	DATE:	November 6, 2018

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EX-31.A

Exhibit 31-a

TRUSTMARK CORPORATION

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gerard R. Host, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Trustmark Corporation;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

BY:	/s/ Gerard R. Host
	Gerard R. Host
	President and Chief Executive Officer
DATE:	November 6, 2018

EX-31.B

Exhibit 31-b

TRUSTMARK CORPORATION

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Louis E. Greer, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Trustmark Corporation;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

BY:	/s/ Louis E. Greer
	Louis E. Greer
	Treasurer, Principal Financial Officer and Principal Accounting Officer
DATE:	November 6, 2018

EX-32.A

Exhibit 32-a

TRUSTMARK CORPORATION

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Trustmark Corporation (Trustmark) on Form 10-Q for the quarter ended September 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Gerard R. Host, President and Chief Executive Officer of Trustmark, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Trustmark.

BY:	/s/ Gerard R. Host
	Gerard R. Host
	President and Chief Executive Officer
DATE:	November 6, 2018

EX-32.B

Exhibit 32-b

TRUSTMARK CORPORATION

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Trustmark Corporation (Trustmark) on Form 10-Q for the quarter ended September 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Louis E. Greer, Treasurer, Principal Financial Officer and Principal Accounting Officer of Trustmark, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Trustmark.

BY:	/s/ Louis E. Greer
	Louis E. Greer
	Treasurer, Principal Financial Officer and Principal Accounting Officer
DATE:	November 6, 2018

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	TRUSTMARK CORP
Entity Central Index Key	0000036146
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		67,088,861
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Trading Symbol	TRMK
Entity Small Business	false
Entity Emerging Growth Company	false

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Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks (noninterest-bearing)	$ 432,471	$ 335,768
Federal funds sold and securities purchased under reverse repurchase agreements	1,000	615
Securities available for sale (at fair value)	1,864,633	2,238,635
Securities held to maturity (fair value: $907,317-2018; $1,046,247-2017)	943,883	1,056,486
Loans held for sale (LHFS)	182,664	180,512
Loans held for investment (LHFI)	8,747,030	8,569,967
Less allowance for loan losses, LHFI	88,874	76,733
Net LHFI	8,658,156	8,493,234
Acquired loans	132,615	261,517
Less allowance for loan losses, acquired loans	1,714	4,079
Net acquired loans	130,901	257,438
Net LHFI and acquired loans	8,789,057	8,750,672
Premises and equipment, net	178,739	179,339
Mortgage servicing rights	101,374	84,269
Goodwill	379,627	379,627
Identifiable intangible assets, net	12,391	16,360
Other real estate	36,475	43,228
Other assets	517,498	532,442
Total Assets	13,439,812	13,797,953
Deposits:
Noninterest-bearing	2,786,539	2,978,074
Interest-bearing	8,170,371	7,599,438
Total deposits	10,956,910	10,577,512
Federal funds purchased and securities sold under repurchase agreements	486,865	469,827
Short-term borrowings	190,023	971,049
Long-term Federal Home Loan Bank (FHLB) advances	896	946
Junior subordinated debt securities	61,856	61,856
Other liabilities	143,658	145,062
Total Liabilities	11,840,208	12,226,252
Shareholders' Equity
Authorized: 250,000,000 shares Issued and outstanding: 67,621,369 shares - 2018; 67,746,094 shares - 2017	14,089	14,115
Capital surplus	362,868	369,124
Retained earnings	1,302,593	1,228,187
Accumulated other comprehensive loss, net of tax	(79,946)	(39,725)
Total Shareholders' Equity	1,599,604	1,571,701
Total Liabilities and Shareholders' Equity	$ 13,439,812	$ 13,797,953

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Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Securities held to maturity, fair value	$ 907,317	$ 1,046,247
Shareholders' Equity
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized (in shares)	250,000,000	250,000,000
Common stock, issued (in shares)	67,621,369	67,746,094
Common stock, outstanding (in shares)	67,621,369	67,746,094

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Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018	Sep. 30, 2017
Interest Income
Interest and fees on LHFS & LHFI	$ 102,980	$ 89,112		$ 291,362	$ 253,507
Interest and fees on acquired loans	4,033	6,625		13,932	18,077
Interest on securities:
Taxable	16,186	19,291		50,586	57,865
Tax exempt	518	717		1,748	2,328
Interest on federal funds sold and securities purchased under reverse repurchase agreements	3	14		10	26
Other interest income	1,050	355		3,038	993
Total Interest Income	124,770	116,114		360,676	332,796
Interest Expense
Interest on deposits	14,972	6,381		36,602	15,433
Interest on federal funds purchased and securities sold under repurchase agreements	1,348	1,301		3,260	3,036
Other interest expense	1,467	4,520		6,574	10,821
Total Interest Expense	17,787	12,202		46,436	29,290
Net Interest Income	106,983	103,912		314,240	303,506
Provision for loan losses, LHFI	8,673	3,672		15,801	9,355
Provision for loan losses, acquired loans	(467)	(1,653)		(758)	(5,822)
Net Interest Income After Provision for Loan Losses	98,777	101,893		299,197	299,973
Noninterest Income
Service charges on deposit accounts	11,075	11,223	[1]	32,579	32,810	[1]
Bank card and other fees	7,459	7,150	[1]	21,155	21,020	[1]
Mortgage banking, net	8,647	4,425	[1]	28,958	23,618	[1]
Insurance commissions	10,765	10,398	[1]	30,919	29,355	[1]
Wealth management	7,789	7,530	[1]	22,834	22,617	[1]
Other, net	1,358	3,740	[1]	4,832	11,268	[1]
Security gains (losses), net		14	[1]	0	15	[1]
Total Noninterest Income	47,093	44,480	[1]	141,277	140,703	[1]
Noninterest Expense
Salaries and employee benefits	60,847	57,871		179,297	170,445
Defined benefit plan termination					17,644
Services and fees	16,404	15,133		48,472	45,474
Net occupancy - premises	6,910	6,702		19,962	19,150
Equipment expense	6,200	6,297		18,501	18,457
Other real estate expense, net	1,168	864		1,941	3,006
FDIC assessment expense	1,999	2,816		7,532	8,142
Other expense	11,695	13,403		35,783	44,900
Total Noninterest Expense	105,223	103,086		311,488	327,218
Income Before Income Taxes	40,647	43,287		128,986	113,458
Income taxes	4,394	8,708		16,090	23,596
Net Income	$ 36,253	$ 34,579		$ 112,896	$ 89,862
Earnings Per Share
Basic	$ 0.54	$ 0.51		$ 1.67	$ 1.33
Diluted	0.54	0.51		1.67	1.32
Dividends Per Share	$ 0.23	$ 0.23		$ 0.69	$ 0.69

[1] Trustmark elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation.

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income per consolidated statements of income	$ 36,253	$ 34,579	$ 112,896	$ 89,862
Net unrealized gains (losses) on available for sale securities and transferred securities:
Net unrealized holding gains (losses) arising during the period	(7,246)	(331)	(35,231)	3,912
Less: adjustment for net (gains) losses realized in net income	0	(8)	0	(9)
Change in net unrealized holding loss on securities transferred to held to maturity	730	698	2,182	2,193
Pension and other postretirement benefit plans:
Net change in prior service costs	47	39	140	116
Recognized net loss due to lump sum settlement	31	0	92	0
Change in net actuarial loss	271	219	819	1,187
Recognized net loss due to defined benefit plan termination	0	0	0	10,492
Derivatives:
Change in the accumulated gain (loss) on effective cash flow hedge derivatives	39	33	458	(61)
Less: adjustment for (gain) loss realized in net income	(79)	34	(157)	143
Other comprehensive income (loss), net of tax	(6,207)	684	(31,697)	17,973
Comprehensive income	$ 30,046	$ 35,263	$ 81,199	$ 107,835

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Consolidated Condensed Statements of Changes in Shareholders' Equity (Unaudited) $ in Thousands	USD ($)
Balance at Dec. 31, 2016	$ 1,520,208
Statement Of Stockholders Equity [Abstract]
Net income per consolidated statements of income	89,862
Other comprehensive income (loss), net of tax	17,973
Common stock dividends paid	(47,099)
Shares withheld to pay taxes, long-term incentive plan	(1,659)
Compensation expense, long-term incentive plan	3,250
Balance at Sep. 30, 2017	1,582,535
Balance at Dec. 31, 2017	1,571,701
Statement Of Stockholders Equity [Abstract]
Net income per consolidated statements of income	112,896
Other comprehensive income (loss), net of tax	(31,697)
Common stock dividends paid	(47,014)
Shares withheld to pay taxes, long-term incentive plan	(1,427)
Repurchase and retirement of common stock	(7,877)
Compensation expense, long-term incentive plan	3,022
Balance at Sep. 30, 2018	$ 1,599,604

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating Activities
Net income per consolidated statements of income	$ 112,896	$ 89,862
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses, net	15,043	3,533
Depreciation and amortization	29,512	28,781
Net amortization of securities	7,197	8,084
Securities (gains) losses, net	0	(15)	[1]
Gains on sales of loans, net	(16,409)	(13,633)
Deferred income tax provision	5,612	4,800
Proceeds from sales of loans held for sale	836,971	885,520
Purchases and originations of loans held for sale	(823,134)	(895,992)
Originations of mortgage servicing rights	(12,248)	(11,630)
Earnings on bank-owned life insurance	(3,994)	(3,753)
Net change in other assets	521	29,599
Net change in other liabilities	14	4,205
Other operating activities, net	(10,268)	6,280
Net cash provided by operating activities	141,713	135,641
Investing Activities
Proceeds from maturities, prepayments and calls of securities held to maturity	114,531	128,515
Proceeds from maturities, prepayments and calls of securities available for sale	334,852	351,817
Proceeds from sales of securities available for sale	0	27,682
Purchases of securities held to maturity	0	(69,989)
Purchases of securities available for sale	(14,040)	(338,532)
Net proceeds from bank-owned life insurance	1,843	3,630
Net change in federal funds sold and securities purchased under reverse repurchase agreements	(385)	4,185
Net change in member bank stock	26,970	739
Net change in loans	(63,796)	(457,292)
Purchases of premises and equipment	(10,870)	(10,963)
Proceeds from sales of premises and equipment	651	7,792
Proceeds from sales of other real estate	16,490	20,301
Purchases of software	(10,701)	(3,492)
Investments in tax credit and other partnerships	(17)	(5,213)
Net cash used in business acquisition	0	(19,775)
Net cash provided by (used in) investing activities	395,528	(360,595)
Financing Activities
Net change in deposits	379,398	9,572
Net change in federal funds purchased and securities sold under repurchase agreements	17,038	5,786
Net change in short-term borrowings	(780,606)	283,820
Payments on long-term FHLB advances	(50)	(49)
Redemption of junior subordinated debt securities	0	(3,000)
Common stock dividends	(47,014)	(47,099)
Repurchase and retirement of common stock	(7,877)	0
Shares withheld to pay taxes, long-term incentive plan	(1,427)	(1,659)
Net cash provided by (used in) financing activities	(440,538)	247,371
Net change in cash and cash equivalents	96,703	22,417
Cash and cash equivalents at beginning of period	335,768	327,706
Cash and cash equivalents at end of period	$ 432,471	$ 350,123

[1] Trustmark elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation.

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Business, Basis of Financial Statement Presentation and Principles of Consolidation

9 Months Ended

Sep. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Business, Basis of Financial Statement Presentation and Principles of Consolidation

Note 1 – Business, Basis of Financial Statement Presentation and Principles of Consolidation

Trustmark Corporation (Trustmark) is a bank holding company headquartered in Jackson, Mississippi.  Through its subsidiaries, Trustmark operates as a financial services organization providing banking and financial solutions to corporate institutions and individual customers through 198 offices at September 30, 2018 in Alabama, Florida, Mississippi, Tennessee and Texas.  

The consolidated financial statements include the accounts of Trustmark and all other entities in which Trustmark has a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation.  Certain reclassifications have been made to prior period amounts to conform to the current period presentation.  

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements, and notes thereto, included in Trustmark’s 2017 Annual Report on Form 10-K.

Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.  In the opinion of Management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of these consolidated financial statements have been included.   The preparation of financial statements in conformity with these accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and income and expense during the reporting periods and the related disclosures.  Although Management’s estimates contemplate current conditions and how they are expected to change in the future, it is reasonably possible that in 2018 actual conditions could vary from those anticipated, which could affect Trustmark’s financial condition and results of operations.  Actual results could differ from those estimates.

Subsequent Events

On October 10, 2018, Hurricane Michael struck the Florida Panhandle causing significant damages.  As of September 30, 2018, Trustmark had 1,787 loans with a balance of $239.7 million and exposure of $282.1 million in the Federal Emergency Management Agency (FEMA) designated disaster areas which includes 12 counties in Florida and 20 counties in Georgia.  Immediately following the storm, Trustmark initiated a process to identify all customers in the FEMA disaster areas.  Efforts are now ongoing to contact those borrowers to offer assistance as well as to establish reasonable estimates of uninsured damage and to adequately assess potential risk to Trustmark.  Management continues to evaluate the impact of Hurricane Michael and is unable to provide a reasonable estimate of the financial impact on Trustmark’s consolidated financial statements at this time.

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Business Combinations

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Business Combinations

Note 2 – Business Combinations

On April 7, 2017, Trustmark completed its merger with RB Bancorporation (Reliance), the holding company for Reliance Bank, which had seven offices serving the Huntsville, Alabama metropolitan service area (MSA).  Reliance Bank was merged into Trustmark National Bank simultaneously with the merger of Trustmark and Reliance. Under the terms of the Merger Agreement dated November 14, 2016, Trustmark paid $22.00 in cash for each share of Reliance common stock outstanding, which represented payment to Reliance common shareholders of approximately $23.7 million.  In addition, Trustmark paid off Reliance Preferred Stock of $1.1 million bringing the total consideration paid to $24.8 million.

The merger with Reliance was consistent with Trustmark’s strategic plan to selectively expand the Trustmark franchise and enhance the Trustmark franchise in north Alabama.

This merger was accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805, “Business Combinations.”  Accordingly, the assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the merger date.

The statement of assets purchased and liabilities assumed in the Reliance merger is presented below at their estimated fair values as of the merger date of April 7, 2017 ($ in thousands):

Assets:
Cash and due from banks	$	5,013
Federal funds sold and securities purchased under reverse repurchase agreements		6,900
Securities		54,843
Acquired loans		117,447
Premises and equipment, net		3,700
Identifiable intangible assets		1,850
Other real estate		475
Other assets		6,037
Total assets		196,265
Liabilities:
Deposits		166,158
Other borrowings		17,469
Other liabilities		1,322
Total liabilities		184,949
Net identifiable assets acquired at fair value		11,316
Goodwill		13,471
Total consideration paid	$	24,787

The excess of the consideration paid over the estimated fair value of the net assets acquired was $13.5 million, which was recorded as goodwill under FASB ASC Topic 805.  The identifiable intangible assets acquired represent the core deposit intangible at fair value at the merger date.  The core deposit intangible is being amortized on an accelerated basis over the estimated useful life, currently expected to be approximately ten years.

Loans acquired from Reliance were evaluated under a fair value process.  Loans with evidence of deterioration in credit quality and for which it was probable at acquisition that Trustmark would not be able to collect all contractually required payments are referred to as acquired impaired loans and accounted for in accordance with FASB ASC Topic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.”  See Note 5 – Acquired Loans for additional information on acquired loans.

The operations of Reliance are included in Trustmark’s operating results from April 7, 2017 and did not have a material impact on Trustmark’s results of operations.  During the second quarter of 2017, Trustmark included merger transaction expenses in other noninterest expense totaling $3.2 million (change in control expense of $1.3 million; professional fees, contract termination and other expenses of $1.9 million).

Fair Value of Acquired Financial Instruments

For financial instruments measured at fair value, Trustmark utilized inputs within Level 2 of the fair value hierarchy to determine the fair value of securities available for sale (included in securities above), time deposits (included in deposits above) and FHLB advances (included in other borrowings above).  Level 3 inputs were used to determine the fair value of acquired loans, identifiable intangible assets and other real estate.  The methodology and significant assumptions used in estimating the fair values of these financial assets and liabilities are as follows:

Securities Available for Sale

Estimated fair values for securities available for sale are based on quoted market prices where available.  If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable instruments.

Acquired Loans

Fair value of acquired loans is determined using a discounted cash flow model based on assumptions regarding the amount and timing of principal and interest payments, estimated prepayments, estimated default rates, estimated loss severity in the event of default and current market rates.

Identifiable Intangible Assets

The fair value assigned to the identifiable intangible assets, in this case the core deposit intangible, represents the future economic benefits of the potential cost savings from acquiring core deposits in the merger compared to the cost of obtaining alternative funding from market sources.

Other Real Estate

Other real estate was initially recorded at its estimated fair value on the merger date based on independent appraisals less estimated selling costs.

Time Deposits

Time deposits were valued by projecting expected cash flows into the future based on each account’s contracted rate and then determining the present value of those expected cash flows using current rates for deposits with similar maturities.

FHLB Advances

FHLB advances were valued by projecting expected cash flows into the future based on each advance’s contracted rate and then determining the present value of those expected cash flows using current rates for advances with similar maturities.

Please refer to Note 17 – Fair Value for more information on Trustmark’s classification of financial instruments based on valuation inputs within the fair value hierarchy.

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Securities Available for Sale and Held to Maturity

9 Months Ended

Sep. 30, 2018

Investments Debt And Equity Securities [Abstract]

Securities Available for Sale and Held to Maturity

Note 3 – Securities Available for Sale and Held to Maturity

The following tables are a summary of the amortized cost and estimated fair value of securities available for sale and held to maturity at September 30, 2018 and December 31, 2017 ($ in thousands):

	Securities Available for Sale									Securities Held to Maturity
September 30, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Government agency obligations	$	33,511	$	126	$	(1,266	)	$	32,371	$	3,725	$	26	$	—		$	3,751
Obligations of states and political    subdivisions		57,127		201		(64	)		57,264		42,623		173		(156	)		42,640
Mortgage-backed securities
Residential mortgage pass-through    securities
Guaranteed by GNMA		68,844		118		(3,115	)		65,847		12,316		33		(389	)		11,960
Issued by FNMA and FHLMC		713,673		125		(29,324	)		684,474		119,040		3		(4,652	)		114,391
Other residential mortgage-backed    securities
Issued or guaranteed by FNMA,    FHLMC or GNMA		872,699		86		(32,712	)		840,073		600,635		—		(27,473	)		573,162
Commercial mortgage-backed securities
Issued or guaranteed by FNMA,    FHLMC or GNMA		189,248		154		(4,798	)		184,604		165,544		41		(4,172	)		161,413
Total	$	1,935,102	$	810	$	(71,279	)	$	1,864,633	$	943,883	$	276	$	(36,842	)	$	907,317
December 31, 2017
U.S. Government agency obligations	$	45,763	$	322	$	(800	)	$	45,285	$	3,692	$	182	$	—		$	3,874
Obligations of states and political    subdivisions		78,433		850		(54	)		79,229		46,039		1,044		(59	)		47,024
Mortgage-backed securities
Residential mortgage pass-through    securities
Guaranteed by GNMA		66,634		215		(1,103	)		65,746		13,539		207		(73	)		13,673
Issued by FNMA and FHLMC		824,872		827		(11,249	)		814,450		133,975		210		(1,559	)		132,626
Other residential mortgage-backed    securities
Issued or guaranteed by FNMA,    FHLMC or GNMA		1,028,176		1,808		(13,194	)		1,016,790		678,926		1,209		(11,065	)		669,070
Commercial mortgage-backed securities
Issued or guaranteed by FNMA,    FHLMC or GNMA		218,252		426		(1,543	)		217,135		180,315		1,102		(1,437	)		179,980
Total	$	2,262,130	$	4,448	$	(27,943	)	$	2,238,635	$	1,056,486	$	3,954	$	(14,193	)	$	1,046,247

During 2013, Trustmark reclassified approximately $1.099 billion of securities available for sale to securities held to maturity.  The securities were transferred at fair value, which became the cost basis for the securities held to maturity.  At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $46.6 million ($28.8 million, net of tax).  The net unrealized holding loss is amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security.  There were no gains or losses recognized as a result of the transfer.  At September 30, 2018, the net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive loss in the accompanying balance sheet totaled approximately $16.6 million ($12.4 million, net of tax).

Temporarily Impaired Securities

The tables below include securities with gross unrealized losses segregated by length of impairment at September 30, 2018 and December 31, 2017 ($ in thousands):

	Less than 12 Months					12 Months or More					Total
September 30, 2018	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
U.S. Government agency obligations	$	—	$	—		$	26,421	$	(1,266	)	$	26,421	$	(1,266	)
Obligations of states and political subdivisions		29,786		(179	)		3,791		(41	)		33,577		(220	)
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		24,843		(677	)		49,000		(2,827	)		73,843		(3,504	)
Issued by FNMA and FHLMC		134,720		(3,928	)		655,161		(30,048	)		789,881		(33,976	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or    GNMA		531,793		(14,120	)		865,762		(46,065	)		1,397,555		(60,185	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or    GNMA		168,750		(3,334	)		158,538		(5,636	)		327,288		(8,970	)
Total	$	889,892	$	(22,238	)	$	1,758,673	$	(85,883	)	$	2,648,565	$	(108,121	)
December 31, 2017
U.S. Government agency obligations	$	5,214	$	(113	)	$	29,432	$	(687	)	$	34,646	$	(800	)
Obligations of states and political subdivisions		19,345		(80	)		3,874		(33	)		23,219		(113	)
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		37,304		(351	)		29,446		(825	)		66,750		(1,176	)
Issued by FNMA and FHLMC		506,410		(4,219	)		369,060		(8,589	)		875,470		(12,808	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or    GNMA		755,013		(7,668	)		534,955		(16,591	)		1,289,968		(24,259	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or    GNMA		230,898		(1,719	)		55,288		(1,261	)		286,186		(2,980	)
Total	$	1,554,184	$	(14,150	)	$	1,022,055	$	(27,986	)	$	2,576,239	$	(42,136	)

The unrealized losses shown above are due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality.  Because Trustmark does not intend to sell these securities and it is more likely than not that Trustmark will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, Trustmark does not consider these investments to be other-than-temporarily impaired at September 30, 2018.  There were no other-than-temporary impairments for the nine months ended September 30, 2018 and 2017.

Security Gains and Losses

Gross realized gains or losses as a result of calls and dispositions of securities, as well as any associated proceeds, were as follows for the periods presented ($ in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
Available for Sale	2018		2017			2018		2017
Proceeds from calls and sales of securities	$	—	$	1,273		$	—	$	27,682
Gross realized gains		—		15			—		16
Gross realized (losses)		—		(1	)		—		(1	)

Realized gains and losses are determined using the specific identification method and are included in noninterest income as security gains (losses), net.

Securities Pledged

Securities with a carrying value of $2.092 billion and $1.834 billion at September 30, 2018 and December 31, 2017, respectively, were pledged to collateralize public deposits and securities sold under repurchase agreements and for other purposes as permitted by law.  At both September 30, 2018 and December 31, 2017, none of these securities were pledged under the Federal Reserve Discount Window program to provide additional contingency funding capacity.  

Contractual Maturities

The amortized cost and estimated fair value of securities available for sale and held to maturity at September 30, 2018, by contractual maturity, are shown below ($ in thousands).  Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	25,525	$	25,554	$	170	$	170
Due after one year through five years		37,426		37,661		41,912		41,934
Due after five years through ten years		3,124		3,054		4,266		4,287
Due after ten years		24,563		23,366		—		—
		90,638		89,635		46,348		46,391
Mortgage-backed securities		1,844,464		1,774,998		897,535		860,926
Total	$	1,935,102	$	1,864,633	$	943,883	$	907,317

XML

Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI

9 Months Ended

Sep. 30, 2018

Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]

Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI

Note 4 – Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI

At September 30, 2018 and December 31, 2017, LHFI consisted of the following ($ in thousands):

	September 30, 2018			December 31, 2017
Loans secured by real estate:
Construction, land development and other land	$	1,031,491		$	987,624
Secured by 1-4 family residential properties		1,801,029			1,675,311
Secured by nonfarm, nonresidential properties		2,294,289			2,193,823
Other real estate secured		453,687			517,956
Commercial and industrial loans		1,565,922			1,570,345
Consumer loans		182,709			171,918
State and other political subdivision loans		929,178			952,483
Other loans		488,725			500,507
LHFI		8,747,030			8,569,967
Allowance for loan losses, LHFI		(88,874	)		(76,733	)
Net LHFI	$	8,658,156		$	8,493,234

Loan Concentrations

Trustmark does not have any loan concentrations other than those reflected in the preceding table, which exceed 10% of total LHFI.  At September 30, 2018, Trustmark’s geographic loan distribution was concentrated primarily in its five key market regions: Alabama, Florida, Mississippi, Tennessee and Texas.  Accordingly, the ultimate collectability of a substantial portion of these loans is susceptible to changes in market conditions in these areas.

Nonaccrual and Past Due LHFI

At September 30, 2018 and December 31, 2017, the carrying amounts of nonaccrual LHFI were $67.8 million and $67.6 million, respectively.  Included in these amounts were $33.6 million and $23.2 million, respectively, of nonaccrual LHFI classified as troubled debt restructurings (TDRs).  No material interest income was recognized in the income statement on nonaccrual LHFI for each of the periods ended September 30, 2018 and 2017.

The following tables provide an aging analysis of past due and nonaccrual LHFI by loan type at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
	Past Due
	30-59 Days		60-89 Days		90 Days orMore (1)		Total		Nonaccrual		Current Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other    land	$	203	$	5	$	—	$	208	$	2,262	$	1,029,021	$	1,031,491
Secured by 1-4 family residential properties		5,626		1,304		447		7,377		15,164		1,778,488		1,801,029
Secured by nonfarm, nonresidential    properties		256		280		—		536		5,389		2,288,364		2,294,289
Other real estate secured		5		—		—		5		742		452,940		453,687
Commercial and industrial loans		1,727		9		21		1,757		33,870		1,530,295		1,565,922
Consumer loans		1,480		241		258		1,979		228		180,502		182,709
State and other political subdivision loans		—		—		—		—		8,762		920,416		929,178
Other loans		419		33		—		452		1,419		486,854		488,725
Total	$	9,716	$	1,872	$	726	$	12,314	$	67,836	$	8,666,880	$	8,747,030

(1) Past due 90 days or more but still accruing interest.

	December 31, 2017
	Past Due
	30-59 Days		60-89 Days		90 Days orMore (1)		Total		Nonaccrual		Current Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other    land	$	391	$	1	$	—	$	392	$	2,105	$	985,127	$	987,624
Secured by 1-4 family residential properties		6,412		2,084		1,917		10,413		19,022		1,645,876		1,675,311
Secured by nonfarm, nonresidential    properties		2,319		256		—		2,575		12,608		2,178,640		2,193,823
Other real estate secured		—		—		—		—		212		517,744		517,956
Commercial and industrial loans		759		1,233		12		2,004		33,338		1,535,003		1,570,345
Consumer loans		2,141		255		242		2,638		135		169,145		171,918
State and other political subdivision loans		350		39		—		389		—		952,094		952,483
Other loans		18		4		—		22		155		500,330		500,507
Total	$	12,390	$	3,872	$	2,171	$	18,433	$	67,575	$	8,483,959	$	8,569,967

(1) Past due 90 days or more but still accruing interest.

Impaired LHFI

Trustmark’s individually evaluated impaired LHFI include all commercial nonaccrual relationships of $500 thousand or more, which are specifically reviewed for impairment and deemed impaired, and all LHFI classified as TDRs in accordance with FASB ASC Topic 310-10-50-20 “Impaired Loans”, and are primarily collateral dependent loans.  Fair value estimates for collateral dependent loans are derived from appraised values based on the current market value or as is value of the collateral, normally from recently received and reviewed appraisals.  Current appraisals are ordered on an annual basis based on the inspection date or more often if market conditions necessitate.  Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property.  These appraisals are reviewed by Trustmark’s Appraisal Review Department to ensure they are acceptable, and values are adjusted down for costs associated with asset disposal.  Once this estimated net realizable value has been determined, the value used in the impairment assessment is updated.  At the time a LHFI that has been individually evaluated for impairment is deemed to be impaired, the full difference between book value and the most likely estimate of the collateral’s net realizable value is charged off.  As subsequent events dictate and estimated net realizable values decline, required reserves may be established or further adjustments recorded.

No material interest income was recognized in the income statement on impaired LHFI for each of the periods ended September 30, 2018 and 2017.

At September 30, 2018 and December 31, 2017, individually evaluated impaired LHFI consisted of the following ($ in thousands):

	September 30, 2018
	LHFI
	Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Total Carrying Amount		Related Allowance		Average Recorded Investment
Loans secured by real estate:
Construction, land development and other land	$	1,801	$	1,546	$	26	$	1,572	$	—	$	1,747
Secured by 1-4 family residential properties		4,771		126		3,614		3,740		43		4,217
Secured by nonfarm, nonresidential properties		3,585		3,010		360		3,370		78		5,845
Other real estate secured		—		—		—		—		—		—
Commercial and industrial loans		39,845		14,657		19,045		33,702		13,869		28,218
Consumer loans		3		—		3		3		—		6
State and other political subdivision loans		8,765		4,079		4,683		8,762		683		4,381
Other loans		1,432		230		1,076		1,306		1,076		816
Total	$	60,202	$	23,648	$	28,807	$	52,455	$	15,749	$	45,230

	December 31, 2017
	LHFI
	Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Total Carrying Amount		Related Allowance		Average Recorded Investment
Loans secured by real estate:
Construction, land development and other land	$	1,704	$	1,206	$	199	$	1,405	$	75	$	1,923
Secured by 1-4 family residential properties		6,031		160		4,576		4,736		1,331		4,693
Secured by nonfarm, nonresidential properties		15,205		10,027		396		10,423		165		8,321
Other real estate secured		—		—		—		—		—		—
Commercial and industrial loans		36,874		31,281		518		31,799		131		22,734
Consumer loans		17		—		17		17		—		9
State and other political subdivision loans		—		—		—		—		—		—
Other loans		556		—		556		556		41		325
Total	$	60,387	$	42,674	$	6,262	$	48,936	$	1,743	$	38,005

Troubled Debt Restructurings

A TDR occurs when a borrower is experiencing financial difficulties, and for related economic or legal reasons, a concession is granted to the borrower that Trustmark would not otherwise consider.  Whatever the form of concession that might be granted by Trustmark, Management’s objective is to enhance collectability by obtaining more cash or other value from the borrower or by increasing the probability of receipt by granting the concession than by not granting it.  Other concessions may arise from court proceedings or may be imposed by law.  In addition, TDRs also include those credits that are extended or renewed to a borrower who is not able to obtain funds from sources other than Trustmark at a market interest rate for new debt with similar risk.

All loans whose terms have been modified in a TDR are evaluated for impairment under FASB ASC Topic 310, “Receivables”. Accordingly, Trustmark measures any loss on the restructuring in accordance with that guidance.  A TDR in which Trustmark receives physical possession of the borrower’s assets, regardless of whether formal foreclosure or repossession proceedings take place, is accounted for in accordance with FASB ASC Subtopic 310-40, “Troubled Debt Restructurings by Creditors.”  Thus, the loan is treated as if assets have been received in satisfaction of the loan and reported as a foreclosed asset.  At September 30, 2018 and December 31, 2017, Trustmark held $203 thousand and $366 thousand, respectively, of foreclosed residential real estate as a result of foreclosure or in substance repossession of consumer mortgage LHFI classified as TDRs.  At September 30, 2018, Trustmark had $55 thousand of consumer mortgage LHFI classified as TDRs in the process of formal foreclosure proceedings compared to none at December 31, 2017.

A TDR may be returned to accrual status if Trustmark is reasonably assured of repayment of principal and interest under the modified terms and the borrower has demonstrated sustained performance under those terms for a period of at least six months. Otherwise, the restructured loan must remain on nonaccrual.

At September 30, 2018 and 2017, LHFI classified as TDRs totaled $36.0 million and $24.4 million, respectively, and were primarily comprised of credits with interest-only payments for an extended period of time which totaled $24.7 million and $21.1 million, respectively.  The remaining TDRs at September 30, 2018 and 2017 resulted from bankruptcies or from payment or maturity extensions.  Trustmark had $7.7 million of unused commitments on TDRs at September 30, 2018 compared to no material unused commitments on TDRs at September 30, 2017.  

For TDRs, Trustmark had a related loan loss allowance of $14.3 million and $393 thousand at September 30, 2018 and 2017, respectively.  LHFI classified as TDRs are charged down to the most likely fair value estimate less an estimated cost to sell for collateral dependent loans, which would approximate net realizable value.  Specific charge-offs related to TDRs totaled $4.7 million for the nine months ended September 30, 2018 compared to $126 thousand for the nine months ended September 30, 2017.

The following tables illustrate the impact of modifications classified as TDRs as well as those TDRs modified within the last 12 months for which there was a payment default during the period for the periods presented ($ in thousands):

	Three Months Ended September 30,
	2018						2017
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Loans secured by 1-4    family residential    properties		3	$	121	$	121		1	$	112	$	113
Loans secured by    nonfarm, nonresidential    properties		—		—		—		1		426		426
Commercial and industrial    loans		9		11,153		10,062		6		12,500		12,500
Total		12	$	11,274	$	10,183		8	$	13,038	$	13,039

	Nine Months Ended September 30,
	2018						2017
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Construction, land    development and other    land loans		1	$	22	$	22		1	$	341	$	325
Loans secured by 1-4    family residential    properties		19		1,873		1,432		17		1,280		1,290
Loans secured by    nonfarm, nonresidential    properties		—		—		—		1		426		426
Commercial and industrial    loans		15		22,899		21,791		7		12,744		12,744
Consumer loans		3		4		4		—		—		—
Total		38	$	24,798	$	23,249		26	$	14,791	$	14,785

	Nine Months Ended September 30,
	2018				2017
TDRs that Subsequently Defaulted	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Construction, land development and other land loans		1	$	21		—	$	—
Loans secured by 1-4 family residential properties		6		321		4		64
Commercial and industrial loans		6		13,985		2		—
Total		13	$	14,327		6	$	64

Trustmark’s TDRs have resulted primarily from allowing the borrower to pay interest-only for an extended period of time rather than from forgiveness.  Accordingly, as shown above, these TDRs have a similar recorded investment for both the pre-modification and post-modification disclosure.  Trustmark has utilized loans 90 days or more past due to define payment default in determining TDRs that have subsequently defaulted.

The following tables detail LHFI classified as TDRs by loan type at September 30, 2018 and 2017 ($ in thousands):

	September 30, 2018
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	26	$	26
Secured by 1-4 family residential properties		563		3,052		3,615
Secured by nonfarm, nonresidential properties		—		360		360
Commercial and industrial loans		1,783		29,636		31,419
Consumer loans		—		3		3
Other loans		—		540		540
Total TDRs	$	2,346	$	33,617	$	35,963

	September 30, 2017
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	272	$	272
Secured by 1-4 family residential properties		14		3,077		3,091
Secured by nonfarm, nonresidential properties		426		436		862
Commercial and industrial loans		—		20,153		20,153
Consumer loans		—		1		1
Total TDRs	$	440	$	23,939	$	24,379

Credit Quality Indicators

Trustmark’s loan portfolio credit quality indicators focus on six key quality ratios that are compared against bank tolerances.  The loan indicators are total classified outstanding, total criticized outstanding, nonperforming loans, nonperforming assets, delinquencies and net loan losses.  Due to the homogenous nature of consumer loans, Trustmark does not assign a formal internal risk rating to each credit and therefore the criticized and classified measures are primarily composed of commercial loans.

In addition to monitoring portfolio credit quality indicators, Trustmark also measures how effectively the lending process is being managed and risks are being identified.  As part of an ongoing monitoring process, Trustmark grades the commercial portfolio as it relates to credit file completion and financial statement exceptions, underwriting, collateral documentation and compliance with law as shown below:

• Credit File Completeness and Financial Statement Exceptions – evaluates the quality and condition of credit files in terms of content and completeness and focuses on efforts to obtain and document sufficient information to determine the quality and status of credits.  Also included is an evaluation of the systems/procedures used to insure compliance with policy.

• Underwriting – evaluates whether credits are adequately analyzed, appropriately structured and properly approved within loan policy requirements.  A properly approved credit is approved by adequate authority in a timely manner with all conditions of approval fulfilled.  Total policy exceptions measure the level of underwriting and other policy exceptions within a loan portfolio.

• Collateral Documentation – focuses on the adequacy of documentation to perfect Trustmark’s collateral position and substantiate collateral value.  Collateral exceptions measure the level of documentation exceptions within a loan portfolio.  Collateral exceptions occur when certain collateral documentation is either not present or not current.

• Compliance with Law – focuses on underwriting, documentation, approval and reporting in compliance with banking laws and regulations.  Primary emphasis is directed to the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), Regulation O requirements and regulations governing appraisals.

Commercial Credits

Trustmark has established a loan grading system that consists of ten individual credit risk grades (risk ratings) that encompass a range from loans where the expectation of loss is negligible to loans where loss has been established.  The model is based on the risk of default for an individual credit and establishes certain criteria to delineate the level of risk across the ten unique credit risk grades.  Credit risk grade definitions are as follows:

• Risk Rate (RR) 1 through RR 6 – Grades one through six represent groups of loans that are not subject to criticism as defined in regulatory guidance.  Loans in these groups exhibit characteristics that represent low to moderate risk measured by using a variety of credit risk criteria such as cash flow coverage, debt service coverage, balance sheet leverage, liquidity, management experience, industry position, prevailing economic conditions, support from secondary sources of repayment and other credit factors that may be relevant to a specific loan.  In general, these loans are supported by properly margined collateral and guarantees of principal parties.

• Other Assets Especially Mentioned (Special Mention) - (RR 7) – a loan that has a potential weakness that if not corrected will lead to a more severe rating.  This rating is for credits that are currently protected but potentially weak because of an adverse feature or condition that if not corrected will lead to a further downgrade.

• Substandard (RR 8) – a loan that has at least one identified weakness that is well defined.  This rating is for credits where the primary sources of repayment are not viable at the time of evaluation or where either the capital or collateral is not adequate to support the loan and the secondary means of repayment do not provide a sufficient level of support to offset the identified weakness.  Loss potential exists in the aggregate amount of substandard loans but does not necessarily exist in individual loans.

• Doubtful (RR 9) – a loan with an identified weakness that does not have a valid secondary source of repayment.  Generally these credits have an impaired primary source of repayment and secondary sources are not sufficient to prevent a loss in the credit.  The exact amount of the loss has not been determined at this time.

• Loss (RR 10) – a loan or a portion of a loan that is deemed to be uncollectible.

By definition, credit risk grades special mention (RR 7), substandard (RR 8), doubtful (RR 9) and loss (RR 10) are criticized loans while substandard (RR 8), doubtful (RR 9) and loss (RR 10) are classified loans.  These definitions are standardized by all bank regulatory agencies and are generally equally applied to each individual lending institution.  The remaining credit risk grades are considered pass credits and are solely defined by Trustmark.

Each commercial loan is assigned a credit risk grade that is an indication for the likelihood of default and is not a direct indication of loss at default.  The loss at default aspect of the subject risk ratings is neither uniform across the nine primary commercial loan groups or constant between the geographic areas.  To account for the variance in the loss at default aspects of the risk rating system, the loss expectations for each risk rating are integrated into the allowance for loan loss methodology where the calculated loss at default is allotted for each individual risk rating with respect to the individual loan group and unique geographic area.  The loss at default aspect of the reserve methodology is calculated each quarter as a component of the overall reserve factor for each risk grade by loan group and geographic area.

To enhance this process, nonaccrual relationships of $500 thousand or more that are rated in one of the criticized categories are routinely reviewed to establish an expectation of loss, if any, and if such examination indicates that the level of reserve is not adequate to cover the expectation of loss, a special reserve or impairment is generally applied.

The distribution of the losses is accomplished by means of a loss distribution model that assigns a loss factor to each risk rating (1 to 9) in each commercial loan pool.  A factor is not applied to risk rate 10 as loans classified as losses are charged off within the period that the loss is determined and are not carried on Trustmark’s books over quarter-end.

The expected loss distribution is spread across the various risk ratings by the perceived level of risk for loss.  The nine grade scale described above ranges from a negligible risk of loss to an identified loss across its breadth.  The loss distribution factors are graduated through the scale on a basis proportional to the degree of risk that appears manifest in each individual rating and assumes that migration through the loan grading system will occur.

Each loan officer assesses the appropriateness of the internal risk rating assigned to their credits on an ongoing basis.  Trustmark’s Asset Review area conducts independent credit quality reviews of the majority of Trustmark’s commercial loan portfolio both on the underlying credit quality of each individual loan portfolio as well as the adherence to Trustmark’s loan policy and the loan administration process.  In general, Asset Review conducts reviews of each lending area within a six to eighteen month window depending on the overall credit quality results of the individual area.

In addition to the ongoing internal risk rate monitoring described above, Trustmark’s Credit Quality Review Committee meets monthly and performs a review of all loans of $100 thousand or more that are either delinquent thirty days or more or on nonaccrual.  This review includes recommendations regarding risk ratings, accrual status, charge-offs and appropriate servicing officer as well as evaluation of problem credits for determination of TDRs.  Quarterly, the Credit Quality Review Committee reviews and modifies continuous action plans for all credits risk rated seven or worse for relationships of $100 thousand or more.

In addition, a semi-annual review of significant development, commercial construction, multi-family and non-owner occupied projects is performed.  The review assesses each particular project with respect to location, project valuations, progress of completion, leasing status, current financial information, rents, operating expenses, cash flow, adherence to budget and projections and other information as applicable.  Summary results are reviewed by Senior and Regional Credit Officers in addition to the Chief Credit Officer with a determination as to the appropriateness of existing risk ratings and accrual status.

Consumer Credits

Consumer LHFI that do not meet a minimum custom credit score are reviewed quarterly by Management.  The Retail Credit Review Committee reviews the volume and percentage of approvals that did not meet the minimum passing custom score by region, individual location, and officer to ensure that Trustmark continues to originate quality loans. 

Trustmark monitors the levels and severity of past due consumer LHFI on a daily basis through its collection activities.  A detailed assessment of consumer LHFI delinquencies is performed monthly at both a product and market level by delivery channel, which incorporates the perceived level of risk at time of underwriting. 

The tables below present LHFI by loan type and credit quality indicator at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
		Commercial LHFI
		Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other    land		$	961,316	$	78	$	4,512	$	208	$	966,114
Secured by 1-4 family residential    properties			125,998		175		2,960		60		129,193
Secured by nonfarm, nonresidential    properties			2,259,388		3,052		31,302		484		2,294,226
Other real estate secured			452,095		454		515		—		453,064
Commercial and industrial loans			1,490,431		9,721		63,936		1,834		1,565,922
Consumer loans			—		—		—		—		—
State and other political subdivision loans			913,286		5,250		10,642		—		929,178
Other loans			458,118		15,597		10,469		77		484,261
Total		$	6,660,632	$	34,327	$	124,336	$	2,663	$	6,821,958

	Consumer LHFI
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other    land	$	65,028	$	3	$	—	$	346	$	65,377	$	1,031,491
Secured by 1-4 family residential    properties		1,651,019		6,566		447		13,804		1,671,836		1,801,029
Secured by nonfarm, nonresidential    properties		63		—		—		—		63		2,294,289
Other real estate secured		623		—		—		—		623		453,687
Commercial and industrial loans		—		—		—		—		—		1,565,922
Consumer loans		180,503		1,721		258		227		182,709		182,709
State and other political subdivision loans		—		—		—		—		—		929,178
Other loans		4,464		—		—		—		4,464		488,725
Total	$	1,901,700	$	8,290	$	705	$	14,377	$	1,925,072	$	8,747,030

	December 31, 2017
		Commercial LHFI
		Pass - Categories 1-6		Special Mention - Category 7		Substandard- Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other    land		$	922,563	$	316	$	3,780	$	222	$	926,881
Secured by 1-4 family residential    properties			127,405		134		4,948		76		132,563
Secured by nonfarm, nonresidential    properties			2,135,749		6,684		50,785		527		2,193,745
Other real estate secured			517,036		—		517		—		517,553
Commercial and industrial loans			1,437,590		28,780		103,089		886		1,570,345
Consumer loans			—		—		—		—		—
State and other political subdivision loans			936,420		5,850		10,213		—		952,483
Other loans			478,083		—		16,390		108		494,581
Total		$	6,554,846	$	41,764	$	189,722	$	1,819	$	6,788,151

	Consumer LHFI
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other    land	$	60,240	$	342	$	—	$	161	$	60,743	$	987,624
Secured by 1-4 family residential    properties		1,516,691		7,874		1,809		16,374		1,542,748		1,675,311
Secured by nonfarm, nonresidential    properties		78		—		—		—		78		2,193,823
Other real estate secured		403		—		—		—		403		517,956
Commercial and industrial loans		—		—		—		—		—		1,570,345
Consumer loans		169,146		2,396		242		134		171,918		171,918
State and other political subdivision loans		—		—		—		—		—		952,483
Other loans		5,926		—		—		—		5,926		500,507
Total	$	1,752,484	$	10,612	$	2,051	$	16,669	$	1,781,816	$	8,569,967

Past Due Loans Held for Sale (LHFS)

LHFS past due 90 days or more totaled $34.1 million and $35.5 million at September 30, 2018 and December 31, 2017, respectively.  LHFS past due 90 days or more are serviced loans eligible for repurchase, which are fully guaranteed by the Government National Mortgage Association (GNMA).  GNMA optional repurchase programs allow financial institutions to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides servicing.  At the servicer’s option and without GNMA’s prior authorization, the servicer may repurchase such a delinquent loan for an amount equal to 100 percent of the remaining principal balance of the loan.  This buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional.  When Trustmark is deemed to have regained effective control over these loans under the unconditional buy-back option, the loans can no longer be reported as sold and must be brought back onto the balance sheet as loans held for sale, regardless of whether Trustmark intends to exercise the buy-back option.  These loans are reported as held for sale with the offsetting liability being reported as short-term borrowings.

Trustmark did not exercise its buy-back option on any delinquent loans serviced for GNMA during the first nine months of 2018 or 2017.

Allowance for Loan Losses, LHFI

Trustmark’s allowance for loan loss methodology for commercial LHFI is based upon regulatory guidance from its primary regulator and GAAP.  The methodology segregates the commercial purpose and commercial construction LHFI portfolios into nine separate loan types (or pools) which have similar characteristics such as repayment, collateral and risk profiles.  The nine basic loan pools are further segregated into Trustmark’s five key market regions, Alabama, Florida, Mississippi, Tennessee and Texas, to take into consideration the uniqueness of each market.  A 10-point risk rating system is utilized for each separate loan pool to apply a reserve factor consisting of quantitative and qualitative components to determine the needed allowance by each loan type.  As a result, there are 450 risk rate factors for commercial loan types.  The nine separate pools are shown below:

Commercial Purpose LHFI

• Real Estate – Owner-Occupied

• Real Estate – Non-Owner Occupied

• Working Capital

• Non-Working Capital

• Land

• Lots and Development

• Political Subdivisions

Commercial Construction LHFI

• 1 to 4 Family

• Non-1 to 4 Family

The quantitative factors of the allowance methodology reflect a twelve-quarter rolling average of net charge-offs by loan type within each key market region.  This allows for a greater sensitivity to current trends, such as economic changes, as well as current loss profiles and creates a more accurate depiction of historical losses.

Qualitative factors used in the allowance methodology include the following:

• National and regional economic trends and conditions

• Impact of recent performance trends

• Experience, ability and effectiveness of management

• Adherence to Trustmark’s loan policies, procedures and internal controls

• Collateral, financial and underwriting exception trends

• Credit concentrations

• Loan facility risk

• Acquisitions

• Catastrophe

Each qualitative factor is converted to a scale ranging from 0 (No risk) to 100 (High Risk), other than the last two factors, which are applied on a dollar-for-dollar basis to ensure that the combination of such factors is proportional. The resulting ratings from the individual factors are weighted and summed to establish the weighted-average qualitative factor within each key market region.

The allowance for loan loss methodology segregates the consumer LHFI portfolio into homogeneous pools of loans that contain similar structure, repayment, collateral and risk profiles.  These homogeneous pools of loans are shown below:

• Residential Mortgage

• Direct Consumer

• Junior Lien on 1-4 Family Residential Properties

• Credit Cards

• Overdrafts

The historical loss experience for these pools is determined by calculating a 12-quarter rolling average of net charge-offs, which is applied to each pool to establish the quantitative aspect of the methodology.  Where, in Management’s estimation, the calculated loss experience does not fully cover the anticipated loss for a pool, an estimate is also applied to each pool to establish the qualitative aspect of the methodology, which represents the perceived risks across the loan portfolio at the current point in time.  This qualitative methodology utilizes five separate factors made up of unique components that when weighted and combined produce an estimated level of reserve for each of the loan pools.  The five qualitative factors include the following:

• Economic indicators

• Performance trends

• Management experience

• Credit concentrations

• Loan policy exceptions

The risk measure for each factor is converted to a scale ranging from 0 (No risk) to 100 (High Risk) to ensure that the combination of such factors is proportional.  The determination of the risk measurement for each qualitative factor is done for all markets combined.  The resulting estimated reserve factor is then applied to each pool.

The resulting ratings from the individual factors are weighted and summed to establish the weighted-average qualitative factor of a specific loan portfolio.  This weighted-average qualitative factor is then applied over the five loan pools.

Trustmark’s loan policy dictates the guidelines to be followed in determining when a loan is charged off.  Commercial purpose loans are charged off when a determination is made that the loan is uncollectible and continuance as a bankable asset is not warranted or an impairment evaluation indicates that a value adjustment is necessary.  Consumer loans secured by 1-4 family residential real estate are generally charged off or written down when the credit becomes severely delinquent and the balance exceeds the fair value of the property less costs to sell.  Non-real estate consumer purpose loans, both secured and unsecured, are generally charged off in full during the month in which the loan becomes 120 days past due.  Credit card loans are generally charged off in full when the loan becomes 180 days past due.

The following tables detail the balance in the allowance for loan losses, LHFI allocated to each loan type segmented by the impairment evaluation methodology used at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	8,414	$	8,414
Secured by 1-4 family residential properties		43		9,265		9,308
Secured by nonfarm, nonresidential properties		78		24,781		24,859
Other real estate secured		—		2,949		2,949
Commercial and industrial loans		13,869		19,448		33,317
Consumer loans		—		3,394		3,394
State and other political subdivision loans		683		510		1,193
Other loans		1,076		4,364		5,440
Total allowance for loan losses, LHFI	$	15,749	$	73,125	$	88,874

	December 31, 2017
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	75	$	7,790	$	7,865
Secured by 1-4 family residential properties		1,331		9,543		10,874
Secured by nonfarm, nonresidential properties		165		23,263		23,428
Other real estate secured		—		2,790		2,790
Commercial and industrial loans		131		22,720		22,851
Consumer loans		—		3,470		3,470
State and other political subdivision loans		—		789		789
Other loans		41		4,625		4,666
Total allowance for loan losses, LHFI	$	1,743	$	74,990	$	76,733

The following tables detail LHFI by loan type related to each balance in the allowance for loan losses, LHFI segregated by the impairment evaluation methodology used at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,572	$	1,029,919	$	1,031,491
Secured by 1-4 family residential properties		3,740		1,797,289		1,801,029
Secured by nonfarm, nonresidential properties		3,370		2,290,919		2,294,289
Other real estate secured		—		453,687		453,687
Commercial and industrial loans		33,702		1,532,220		1,565,922
Consumer loans		3		182,706		182,709
State and other political subdivision loans		8,762		920,416		929,178
Other loans		1,306		487,419		488,725
Total	$	52,455	$	8,694,575	$	8,747,030

	December 31, 2017
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,405	$	986,219	$	987,624
Secured by 1-4 family residential properties		4,736		1,670,575		1,675,311
Secured by nonfarm, nonresidential properties		10,423		2,183,400		2,193,823
Other real estate secured		—		517,956		517,956
Commercial and industrial loans		31,799		1,538,546		1,570,345
Consumer loans		17		171,901		171,918
State and other political subdivision loans		—		952,483		952,483
Other loans		556		499,951		500,507
Total	$	48,936	$	8,521,031	$	8,569,967

Changes in the allowance for loan losses, LHFI were as follows for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Balance at beginning of period	$	83,566		$	76,184		$	76,733		$	71,265
Transfers (1)		772			—			1,554			—
Loans charged-off		(7,017	)		(2,752	)		(12,980	)		(9,072	)
Recoveries		2,880			3,228			7,766			8,784
Net (charge-offs) recoveries		(4,137	)		476			(5,214	)		(288	)
Provision for loan losses, LHFI		8,673			3,672			15,801			9,355
Balance at end of period	$	88,874		$	80,332		$	88,874		$	80,332

(1) The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank & Trust Company (Bay Bank) merger on March 16, 2012, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage Banking Group (Heritage) acquisition on April 15, 2011 and the Reliance merger on April 7, 2017, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.

The following tables detail changes in the allowance for loan losses, LHFI by loan type for the periods ended September 30, 2018 and 2017 ($ in thousands):

	2018
	Balance January 1,		Transfers (1)		Charge-offs			Recoveries		Provision for Loan Losses			Balance September 30,
Loans secured by real estate:
Construction, land development and other land	$	7,865	$	584	$	(123	)	$	1,039	$	(951	)	$	8,414
Secured by 1-4 family residential properties		10,874		182		(1,435	)		439		(752	)		9,308
Secured by nonfarm, nonresidential properties		23,428		446		(1,117	)		120		1,982			24,859
Other real estate secured		2,790		291		—			17		(149	)		2,949
Commercial and industrial loans		22,851		46		(4,658	)		2,285		12,793			33,317
Consumer loans		3,470		5		(1,585	)		1,545		(41	)		3,394
State and other political subdivision loans		789		—		—			—		404			1,193
Other loans		4,666		—		(4,062	)		2,321		2,515			5,440
Total allowance for loan losses, LHFI	$	76,733	$	1,554	$	(12,980	)	$	7,766	$	15,801		$	88,874

(1) The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger on March 16, 2012, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.

	2017
	Balance January 1,		Charge-offs			Recoveries		Provision for Loan Losses			Balance September 30,
Loans secured by real estate:
Construction, land development and other land loans	$	9,085	$	(79	)	$	1,257	$	(1,615	)	$	8,648
Secured by 1-4 family residential properties		10,347		(753	)		1,429		(743	)		10,280
Secured by nonfarm, nonresidential properties		20,967		(50	)		289		7,542			28,748
Other real estate secured		2,263		—			31		1,111			3,405
Commercial and industrial loans		22,011		(2,624	)		1,813		(1,420	)		19,780
Consumer loans		3,241		(1,809	)		1,427		1,597			4,456
State and other political subdivision loans		859		—			—		(48	)		811
Other loans		2,492		(3,757	)		2,538		2,931			4,204
Total allowance for loan losses, LHFI	$	71,265	$	(9,072	)	$	8,784	$	9,355		$	80,332

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Acquired Loans

9 Months Ended

Sep. 30, 2018

Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract]

Acquired Loans

Note 5 – Acquired Loans

Trustmark’s loss-share agreement with the FDIC covering the acquired covered loans secured by 1-4 family residential properties will expire in 2021.

Loans acquired in the Reliance merger completed on April 7, 2017 were evaluated using a fair value process to determine the degree of credit deterioration since origination and the collectibility of contractually required payments.  Approximately $7.9 million of the loans acquired in the Reliance merger exhibited evidence of significant credit deterioration since origination and for which it was probable at acquisition that Trustmark would not be able to collect all contractually required payments.  These loans were accounted for as acquired impaired loans under FASB ASC Topic 310-30.

At September 30, 2018 and December 31, 2017, acquired loans consisted of the following ($ in thousands):

	September 30, 2018			December 31, 2017
Loans secured by real estate:
Construction, land development and other land	$	6,657		$	23,586
Secured by 1-4 family residential properties		25,274			61,751
Secured by nonfarm, nonresidential properties		66,865			114,694
Other real estate secured		8,507			16,746
Commercial and industrial loans		16,610			31,506
Consumer loans		1,514			2,600
Other loans		7,188			10,634
Acquired loans		132,615			261,517
Allowance for loan losses, acquired loans		(1,714	)		(4,079	)
Net acquired loans	$	130,901		$	257,438

The following table presents changes in the net carrying value of the acquired loans for the periods presented ($ in thousands):

	Acquired Impaired			Acquired Not ASC 310-30 (1)
Carrying value, net at January 1, 2017	$	218,107		$	42,743
Transfers (2)		—			(36,719	)
Additions (3)		7,899			109,548
Accretion to interest income		14,924			1,578
Payments received, net		(68,317	)		(39,208	)
Other (4)		(361	)		(74	)
Change in allowance for loan losses, acquired loans		7,318			—
Carrying value, net at December 31, 2017		179,570			77,868
Transfers (5)(2)		(26,497	)		(43,922	)
Accretion to interest income		7,870			782
Payments received, net		(50,940	)		(16,096	)
Other (4)		(173	)		74
Change in allowance for loan losses, acquired loans		2,365			—
Carrying value, net at September 30, 2018	$	112,195		$	18,706

(1) “Acquired Not ASC 310-30” loans consist of loans that are not in scope for FASB ASC Topic 310-30.

(2) “Acquired Not ASC 310-30”loans transferred to LHFI due to the discount on these loans being fully amortized.

(3) Loans acquired in the Reliance merger on April 7, 2017.

(4) Includes miscellaneous timing adjustments as well as acquired loan terminations through foreclosure, charge-off and other terminations.

(5) During the second quarter of 2018, Trustmark transferred the remaining loans acquired in the Bay Bank merger on March 16, 2012 from acquired impaired loans to LHFI.  During the third quarter of 2018, Trustmark transferred the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017 from acquired impaired loans to LHFI.

Under FASB ASC Topic 310-30, the accretable yield is the excess of expected cash flows at acquisition over the initial fair value of acquired impaired loans and is recorded as interest income over the estimated life of the loans using the effective yield method if the timing and amount of the future cash flows is reasonably estimable.  The following table presents changes in the accretable yield for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2018			2017
Accretable yield at beginning of period	$	(31,426	)	$	(38,918	)
Accretion to interest income		7,870			11,021
Additions due to acquisitions (1)		—			(784	)
Disposals, net		3,452			1,759
Transfers (2)		5,874			—
Reclassification from nonaccretable difference (3)		(4,204	)		(7,204	)
Accretable yield at end of period	$	(18,434	)	$	(34,126	)

(1) Accretable yield on loans acquired from Reliance on April 7, 2017.

(2) During the second quarter of 2018, Trustmark transferred the remaining loans acquired in the Bay Bank merger on March 16, 2012 from acquired impaired loans to LHFI.  During the third quarter of 2018, Trustmark transferred the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017 from acquired impaired loans to LHFI.

(3) Reclassifications from nonaccretable difference are due to lower loss expectations and improvements in expected cash flows.

The following tables present the components of the allowance for loan losses on acquired loans for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Balance at beginning of period	$	3,046		$	7,423		$	4,079		$	11,397
Transfers (1)		(772	)		—			(1,554	)		—
Net (charge-offs) recoveries		(93	)		(2	)		(53	)		193
Provision for loan losses, acquired loans		(467	)		(1,653	)		(758	)		(5,822	)
Balance at end of period	$	1,714		$	5,768		$	1,714		$	5,768

(1) The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage acquisition and the Reliance merger, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.

As discussed in Note 4 - Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI, Trustmark has established a loan grading system that consists of ten individual credit risk grades (risk ratings) that encompass a range from loans where the expectation of loss is negligible to loans where loss has been established.  The model is based on the risk of default for an individual credit and establishes certain criteria to segregate the level of risk across the ten unique risk ratings.  These credit quality measures are unique to commercial loans.  Credit quality for consumer loans is based on individual credit scores, aging status of the loan and payment activity.

The tables below present the acquired loans by loan type and credit quality indicator at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
			Commercial Loans
			Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development    and other land			$	5,541	$	25	$	296	$	68	$	5,930
Secured by 1-4 family    residential properties				5,594		47		645		—		6,286
Secured by nonfarm,    nonresidential properties				51,123		—		15,223		519		66,865
Other real estate secured				7,906		—		177		424		8,507
Commercial and industrial loans				7,366		—		6,832		2,412		16,610
Consumer loans				—		—		—		—		—
Other loans				4,536		—		2,652		—		7,188
Total acquired loans			$	82,066	$	72	$	25,825	$	3,423	$	111,386
	Consumer Loans
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual (1)		Subtotal		Total Acquired Loans
Loans secured by real estate:
Construction, land development    and other land	$	652	$	75	$	—	$	—	$	727	$	6,657
Secured by 1-4 family    residential properties		17,676		1,044		268		—		18,988		25,274
Secured by nonfarm,    nonresidential properties		—		—		—		—		—		66,865
Other real estate secured		—		—		—		—		—		8,507
Commercial and industrial loans		—		—		—		—		—		16,610
Consumer loans		1,473		41		—		—		1,514		1,514
Other loans		—		—		—		—		—		7,188
Total acquired loans	$	19,801	$	1,160	$	268	$	—	$	21,229	$	132,615

(1) Acquired loans not accounted for under FASB ASC Topic 310-30.

	December 31, 2017
			Commercial Loans
			Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development    and other land			$	17,150	$	234	$	4,690	$	264	$	22,338
Secured by 1-4 family    residential properties				14,021		298		3,029		—		17,348
Secured by nonfarm,    nonresidential properties				95,147		1,400		17,583		530		114,660
Other real estate secured				12,730		102		3,031		477		16,340
Commercial and industrial loans				22,157		15		7,585		1,749		31,506
Consumer loans				—		—		—		—		—
Other loans				5,874		18		4,742		—		10,634
Total acquired loans			$	167,079	$	2,067	$	40,660	$	3,020	$	212,826
	Consumer Loans
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual (1)		Subtotal		Total Acquired Loans
Loans secured by real estate:
Construction, land development    and other land	$	1,188	$	46	$	14	$	—	$	1,248	$	23,586
Secured by 1-4 family    residential properties		42,008		1,687		584		124		44,403		61,751
Secured by nonfarm,    nonresidential properties		34		—		—		—		34		114,694
Other real estate secured		406		—		—		—		406		16,746
Commercial and industrial loans		—		—		—		—		—		31,506
Consumer loans		2,428		172		—		—		2,600		2,600
Other loans		—		—		—		—		—		10,634
Total acquired loans	$	46,064	$	1,905	$	598	$	124	$	48,691	$	261,517

(1) Acquired loans not accounted for under FASB ASC Topic 310-30.

The following tables provide an aging analysis of contractually past due and nonaccrual acquired loans by loan type at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
	Past Due
	30-59 Days		60-89 Days		90 Days or More (1)		Total		Nonaccrual (2)		Current Loans		Total Acquired Loans
Loans secured by real estate:
Construction, land development    and other land	$	103	$	—	$	25	$	128	$	—	$	6,529	$	6,657
Secured by 1-4 family residential    properties		703		341		288		1,332		—		23,942		25,274
Secured by nonfarm, nonresidential    properties		297		—		1,475		1,772		—		65,093		66,865
Other real estate secured		15		—		—		15		—		8,492		8,507
Commercial and industrial loans		—		—		607		607		—		16,003		16,610
Consumer loans		39		2		—		41		—		1,473		1,514
Other loans		—		—		—		—		—		7,188		7,188
Total acquired loans	$	1,157	$	343	$	2,395	$	3,895	$	—	$	128,720	$	132,615

(1) Past due 90 days or more but still accruing interest.

(2) Acquired loans not accounted for under FASB ASC Topic 310-30.

	December 31, 2017
	Past Due
	30-59 Days		60-89 Days		90 Days or More (1)		Total		Nonaccrual (2)		Current Loans		Total Acquired Loans
Loans secured by real estate:
Construction, land development and    other land	$	34	$	90	$	861	$	985	$	—	$	22,601	$	23,586
Secured by 1-4 family residential    properties		1,691		614		654		2,959		302		58,490		61,751
Secured by nonfarm, nonresidential    properties		467		73		898		1,438		—		113,256		114,694
Other real estate secured		132		—		—		132		—		16,614		16,746
Commercial and industrial loans		—		—		—		—		2		31,504		31,506
Consumer loans		16		156		—		172		—		2,428		2,600
Other loans		—		—		21		21		—		10,613		10,634
Total acquired loans	$	2,340	$	933	$	2,434	$	5,707	$	304	$	255,506	$	261,517

(1) Past due 90 days or more but still accruing interest.

(2) Acquired loans not accounted for under FASB ASC Topic 310-30.

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Mortgage Banking

9 Months Ended

Sep. 30, 2018

Mortgage Banking [Abstract]

Mortgage Banking

Note 6 – Mortgage Banking

Mortgage Servicing Rights

The activity in the mortgage servicing rights (MSR) is detailed in the table below for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2018			2017
Balance at beginning of period	$	84,269		$	80,239
Origination of servicing assets		12,248			11,630
Change in fair value:
Due to market changes		13,879			(2,218	)
Due to run-off		(9,022	)		(8,174	)
Balance at end of period	$	101,374		$	81,477

Trustmark determines the fair value of the MSR using a valuation model administered by a third party that calculates the present value of estimated future net servicing income.  Trustmark considers the conditional prepayment rate (CPR), which is an estimated loan prepayment rate that uses historical prepayment rates for previous loans similar to the loans being evaluated, and the discount rate in determining the fair value of the MSR. An increase in either the CPR or discount rate assumption will result in a decrease in the fair value of the MSR, while a decrease in either assumption will result in an increase in the fair value of the MSR.  At September 30, 2018, the fair value of the MSR included an assumed average prepayment speed of 6.86 CPR and an average discount rate of 10.04% compared to an assumed average prepayment speed of 9.25 CPR and an average discount rate of 10.28% at September 30, 2017.

Mortgage Loans Serviced/Sold

During the first nine months of 2018 and 2017, Trustmark sold $820.6 million and $871.9 million, respectively, of residential mortgage loans.  Pretax gains on these sales were recorded to noninterest income in mortgage banking, net and totaled $16.4 million for the first nine months of 2018 compared to $13.6 million for the first nine months of 2017.  The table below details the mortgage loans sold and serviced for others at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018		December 31, 2017
Federal National Mortgage Association	$	4,174,961	$	4,128,614
Government National Mortgage Association		2,492,009		2,421,456
Federal Home Loan Mortgage Corporation		69,617		47,071
Other		22,804		26,864
Total mortgage loans sold and serviced for others	$	6,759,391	$	6,624,005

Trustmark is subject to losses in its loan servicing portfolio due to loan foreclosures.  Trustmark has obligations to either repurchase the outstanding principal balance of a loan or make the purchaser whole for the economic benefits of a loan if it is determined that the loan sold was in violation of representations or warranties made by Trustmark at the time of the sale, herein referred to as mortgage loan servicing putback expenses.  Such representations and warranties typically include those made regarding loans that had missing or insufficient file documentation, loans that do not meet investor guidelines, loans in which the appraisal does not support the value and/or loans obtained through fraud by the borrowers or other third parties.  Generally, putback requests may be made until the loan is paid in full.  However, mortgage loans delivered to Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC) on or after January 1, 2013 are subject to the Lending and Selling Representations and Warranties Framework updated in May 2014, which provides certain instances in which FNMA and FHLMC will not exercise their remedies, including a putback request, for breaches of certain selling representations and warranties, such as payment history and quality control review.

When a putback request is received, Trustmark evaluates the request and takes appropriate actions based on the nature of the request.  Trustmark is required by FNMA and FHLMC to provide a response to putback requests within 60 days of the date of receipt.  Currently, putback requests primarily relate to 2009 through 2013 vintage mortgage loans.  The total mortgage loan servicing putback expenses are included in other expense.

Changes in the reserve for mortgage loan servicing putback expense for mortgage loans were as follows for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2018		2017
Balance at beginning of period	$	1,000	$	1,130
Provision for putback expenses		—		164
Other (1)		—		706
Balance at end of period	$	1,000	$	2,000

(1) Includes fair value adjustments for loans transferred due to underwriting issues as well as adjustments based on Trustmark’s mortgage loan servicing putback reserve analysis.    

There is inherent uncertainty in reasonably estimating the requirement for reserves against potential future mortgage loan servicing putback expenses.  Future putback expenses are dependent on many subjective factors, including the review procedures of the purchasers and the potential refinance activity on loans sold with servicing released and the subsequent consequences under the representations and warranties.  Trustmark believes that it has appropriately reserved for potential mortgage loan servicing putback requests.

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Other Real Estate

9 Months Ended

Sep. 30, 2018

Other Real Estate And Foreclosed Assets [Abstract]

Other Real Estate

Note 7 – Other Real Estate

At September 30, 2018, Trustmark’s geographic other real estate distribution was concentrated primarily in its five key market regions: Alabama, Florida, Mississippi, Tennessee and Texas.  The ultimate recovery of a substantial portion of the carrying amount of other real estate is susceptible to changes in market conditions in these areas.

For the periods presented, changes and gains (losses), net on other real estate were as follows ($ in thousands):

	Nine Months Ended September 30,
	2018			2017
Balance at beginning of period	$	43,228		$	62,051
Additions (1)		10,368			7,481
Disposals		(15,264	)		(18,583	)
Write-downs		(1,857	)		(2,593	)
Balance at end of period	$	36,475		$	48,356
Gains (losses), net on the sale of other real estate included in    other real estate expense	$	1,226		$	1,722

(1) Includes $475 thousand of other real estate acquired in the Reliance merger on April 7, 2017.

At September 30, 2018 and December 31, 2017, other real estate by type of property consisted of the following ($ in thousands):

	September 30, 2018		December 31, 2017
Construction, land development and other land properties	$	18,976	$	27,491
1-4 family residential properties		5,266		5,081
Nonfarm, nonresidential properties		12,050		10,468
Other real estate properties		183		188
Total other real estate	$	36,475	$	43,228

At September 30, 2018 and December 31, 2017, other real estate by geographic location consisted of the following ($ in thousands):

	September 30, 2018		December 31, 2017
Alabama	$	7,526	$	11,714
Florida		8,931		13,937
Mississippi (1)		18,191		14,260
Tennessee (2)		1,083		2,535
Texas		744		782
Total other real estate	$	36,475	$	43,228

(1) Mississippi includes Central and Southern Mississippi Regions

(2) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions

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Deposits

9 Months Ended

Sep. 30, 2018

Deposits [Abstract]

Deposits

Note 8 – Deposits

At September 30, 2018 and December 31, 2017, deposits consisted of the following ($ in thousands):

	September 30, 2018		December 31, 2017
Noninterest-bearing demand	$	2,786,539	$	2,978,074
Interest-bearing demand		2,739,245		2,432,814
Savings		3,538,125		3,408,183
Time		1,893,001		1,758,441
Total	$	10,956,910	$	10,577,512

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Securities Sold Under Repurchase Agreements

9 Months Ended

Sep. 30, 2018

Securities Sold Under Agreements To Repurchase [Abstract]

Securities Sold Under Repurchase Agreements

Note 9 – Securities Sold Under Repurchase Agreements

Trustmark utilizes securities sold under repurchase agreements as a source of borrowing in connection with overnight repurchase agreements offered to commercial deposit customers by using its unencumbered investment securities as collateral.  Trustmark accounts for its securities sold under repurchase agreements as secured borrowings in accordance with FASB ASC Topic 860-30, “Transfers and Servicing – Secured Borrowing and Collateral.”  Securities sold under repurchase agreements are stated at the amount of cash received in connection with the transaction.  Trustmark monitors collateral levels on a continual basis and may be required to provide additional collateral based on the fair value of the underlying securities.  Securities sold under repurchase agreements were secured by securities with a carrying amount of $167.1 million and $200.9 million at September 30, 2018 and December 31, 2017, respectively.  Trustmark’s repurchase agreements are transacted under master repurchase agreements that give Trustmark, in the event of default by the counterparty, the right of offset with the same counterparty.  As of September 30, 2018, all repurchase agreements were short-term and consisted primarily of sweep repurchase arrangements, under which excess deposits are “swept” into overnight repurchase agreements with Trustmark.  The following table presents the securities sold under repurchase agreements by collateral pledged at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018		December 31, 2017
Mortgage-backed securities
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA	$	41,650	$	68,246
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		48,861		50,448
Total securities sold under repurchase agreements	$	90,511	$	118,694

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Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2018

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

Note 10 – Revenue from Contracts with Customers

Effective January 1, 2018, 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.

General Banking Division

Service Charges on Deposit Accounts

In general, deposit accounts represent contracts with customers with no fixed duration and can be terminated or modified by either party at any time without compensation to the other party.  According to FASB ASC Topic 606, a contract that can be terminated by either party without compensation does not exist for periods beyond the then-current period.  Therefore, deposit contracts are considered to renew day-to-day if not minute-to-minute.

Deposit contracts have a single continuous or stand-ready service obligation whereby Trustmark makes customer funds available for use by the customer as and when the customer chooses as well as other services such as statement rendering and online banking.  The specific services provided vary based on the type of deposit account.  These services are not individually distinct, but are distinct as a group, and therefore, constitute a single performance obligation which is satisfied over time and qualifies as a series of distinct service periods.

Trustmark receives a fixed service charge amount as consideration monthly for services rendered.  The service charge amount varies based on the type of deposit account.  Some of the service charge revenue is subject to refund provisions, which is variable consideration under the guidelines of FASB ASC Topic 606.  Trustmark has elected the ‘as-invoiced’ practical expedient permitted under FASB ASC Topic 606 for recognition of service charge revenue.  Therefore, revenue is recognized at the time and in the amount the customer is charged.  The service charge revenue is presented net of refunded amounts on Trustmark’s consolidated statements of income.

Services related to non-sufficient funds, overdrafts, excess account activity, stop payments, dormant accounts, etc. are considered optional purchases for a deposit contract because there is no performance obligation for Trustmark until the service is requested by the customer or the occurrence of a triggering event.  Fees for these services are fixed amounts and are charged to the customer when the service is performed.  Revenue is recognized at the time the customer is charged.

Bank Card and Other Fees

Revenue from contracts with customers in bank card and other fees includes income related to interchange fees and various other contracts which primarily consists of contracts with a single performance obligation that is satisfied at a point in time.  Trustmark receives a fixed consideration amount once the performance obligation is completed for these contracts.  Trustmark reports revenue from these contracts net of amounts refunded or due to a third party.

Interchange Fees

As both a debit and credit card issuer, Trustmark receives an interchange fee for every card transaction completed by its customers with a merchant.  Trustmark receives two types of interchange fees: point-of-sale transactions in which the customer must enter the PIN associated with the card to complete the transaction (a debit card transaction), and signature transactions in which the signature of the customer is required to complete the transaction (a credit card transaction).

Trustmark, as the card issuing or settlement bank, has a contract (implied based on customary business practices) with the payment network in which Trustmark has a single continuous service obligation to make funds available for settlement of the card transaction.  Trustmark’s service obligation is satisfied over time and qualifies as a series of distinct service periods.  Trustmark receives interchange fees as consideration for services rendered in the amount established by the respective payment network.  The interchange fees are established by the payment network based on the type of transaction and is posted on their website.  Trustmark receives and records interchange fee revenue from the payment networks daily net of all fees and amounts due to the payment network.

Other Income

Revenue from contracts with customers in other income includes income related to cash management services and other contracts with a single performance obligation that is satisfied at a point in time.  Trustmark receives a fixed consideration amount once the performance obligation is completed for these contracts.  Trustmark reports revenue from these contracts net of amounts refunded or due to a third party.

Cash Management Services

Trustmark provides cash management services through the delivery of various products and services offered to its business and municipal customers including various departments of state, city and local governments, universities and other non-profit entities.  Similar to the deposit account contracts, the cash management contracts primarily represent contracts with customers with no fixed duration and can be terminated or modified by either party at any time without compensation to the other party.  Therefore, cash management contracts are generally considered to renew day-to-day if not minute-to-minute.  

Cash management contracts have a single continuous or stand-ready service obligation whereby Trustmark makes a specific service or group of services available for use by the customer as and when the customer chooses.  The specific services provided vary based on the type of account or product.  These services are not individually distinct, but are distinct as a group, and therefore, constitute a single performance obligation which is satisfied over time and qualifies as a series of distinct service periods.

Trustmark receives a set service charge or maintenance fee amount as consideration monthly for services rendered.  However, some of the fees are based on the number of transactions that occur (i.e. flat fee for a set number of transactions per month then an additional charge for each transaction after that) or the average daily account balance maintained by the customer during the month and a small amount of the cash management fee revenue is subject to refund provisions.  These fees represent variable consideration under the guidelines of FASB ASC Topic 606.  Trustmark has elected the ‘as-invoiced’ practical expedient permitted under FASB ASC Topic 606 for recognition of cash management fee revenue.  The cash management revenue is presented net of any refunded amounts on Trustmark’s consolidated statements of income.

Trustmark’s merchant services provider contracts directly with Trustmark business customers and provides Trustmark’s merchant customers card processing equipment and transaction processing services.  Trustmark’s contract with the merchant services provider has a single-continuous service obligation to provide customer referrals for potential new accounts which is satisfied over time and qualifies as a series of distinct service periods.  Trustmark receives a flat fee for each new account established and a percentage of the residual income related to transactions processed for Trustmark’s merchant customers each month as provided in the contract.  Under the guidelines of FASB ASC Topic 606, the fee received for each new account and the profit sharing represent variable consideration.  Revenue from merchant card services contracts is recognized monthly using a time-elapsed measure of progress.  Trustmark has elected the ‘as-invoiced’ practical expedient permitted under FASB ASC Topic 606 for recognition of the merchant card services revenue.

Other Real Estate

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.  Other real estate sales for the three and nine months ended September 30, 2018 resulted in net gains of $224 thousand and $1.2 million, respectively, compared to $200 thousand and $1.7 million for the three and nine months ended September 30, 2017, respectively.

In general, purchases of Trustmark’s other real estate property are not financed by Trustmark.  Financing the purchase of other real estate is evaluated based upon the same lending policies and procedures as all other types of loans.  Under FASB ASC Topic 610-20, “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets,” when Trustmark finances the sale of its other real estate to a buyer, Trustmark is required to assess whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable.  Once these two criteria are met, Trustmark derecognizes the other real estate asset and records a gain or loss on the sale once control of the property is transferred to the buyer.

Wealth Management Division

Trust Management

There are five categories of revenue included in trust management: personal trust and investments, retirement plan services, institutional custody, corporate trust and other.  Each of these categories includes multiple types of contracts, service obligations and fee income.  However, the majority of these contracts include a single service obligation that is satisfied over time, the customer is charged in arrears for services rendered and revenue is recognized when payment is received.  In general, the time period between when the service obligation is completed and when payment from the customer is received is less than 30 days.  Revenue from trust management contracts is primarily related to monthly service periods and based on the prior month-end’s market value.  Some trust management revenue is mandated by a court order, while other revenue consists of flat fees.  Trust management revenue based on an account’s market value represents variable consideration under the guidelines of FASB ASC Topic 606.  Trustmark has elected the ‘as-invoiced’ practical expedient allowed under FASB ASC Topic 606 to account for the trust management revenue.

Investment Services

Investment services includes both brokerage and annuity income.  Trustmark has a contract with a third-party investment services company which contains a single continuous service obligation, to provide broker-dealer and advisory services to customers on behalf of the third-party, which is satisfied over time and qualifies as a series of distinct service periods.  Trustmark serves as the agent between the third-party investment services company, the principle, and the customer.  In accordance with the contract, Trustmark receives a monthly payment from the investment services company for commissions and advisory fees (asset management fees) earned on transactions completed in the prior month net of all charges and fees due to the investment services company.  Trustmark recognizes revenue from the investment services company, net of the revenue sharing expense due to the investment services company, when the payments are received.  Commissions vary from month-to-month based on the specific products and transactions completed.  The advisory fees vary based on the average daily balance of the managed assets for the period.  The commissions and advisory fees represent variable consideration under FASB ASC Topic 606.  Trustmark has elected the ‘as-invoiced’ practical expedient allowed under FASB ASC Topic 606 to recognize revenue from the investment services company.

Insurance Division

Fisher Brown Bottrell Insurance, Inc. (FBBI), a wholly-owned subsidiary of TNB, operates as an insurance broker representing the policyholder and has no allegiance with any one insurance provider.  FBBI serves as the agent between the insurance provider (either insurance carrier or broker), the principal, and the policy holder, the customer.  FBBI has four general categories of insurance contracts: commercial, commercial installments, personal and employee benefits.  FBBI’s insurance contracts contain a single performance obligation, policy placement, which is satisfied at a point in time.  FBBI’s performance obligation is satisfied as of the policy effective date.

In addition to policy placement, FBBI provides various other periodic services to the policyholders for which no additional fee is charged.  These additional services are not considered material to the overall contract.  Trustmark has elected the immaterial promises practical expedient allowed under FASB ASC Topic 606, which allows Trustmark to not assess whether promised services are performance obligations if the promised services are immaterial in the context of the contract.  Therefore, the immaterial additional services offered to policyholders are not considered a performance obligation and no amount of the contract transaction price is allocated to these services.

In general, the transaction price for the insurance contracts is an established commission amount agreed upon by FBBI and the insurance provider.  The commission amount varies based on the insurance provider and the type of policy.  There are a small number of insurance contracts which FBBI does not receive a commission, but charges a fee directly to the policyholder.  

Most of the commissions from insurance contracts are subject to clawback provisions which require FBBI to refund a prorated amount of the commissions received as a result of policy cancellations or lapses.  Commissions subject to clawback provisions are considered variable consideration under FASB ASC Topic 606.  Trustmark believes the expected value method of estimating the commissions subject to clawback provisions would best predict the amount of commissions FBBI will be entitled to because of the large number of insurance contracts with similar characteristics and the number of possible outcomes.  FBBI calculates a separate weighted-average percentage (returned commissions percentage) based on actual cancellations over the previous three years for commercial lines, bonds, and personal lines.  FBBI applies the respective returned commissions percentage to the commission revenue earned related to insurance contracts within these three lines each month to calculate the estimated returned commissions amount, which represents the variable consideration subject to variable constraint.  Revenue from insurance contracts is reported net of the variable consideration subject to variable constraint.  FBBI performs an analysis of the returned commissions reserve quarterly and adjusts the reserve balance based on all available information including actual cancellations and the remaining term of the contract.  The returned commissions percentage is updated annually.  

Insurance Producers at FBBI earn commission as compensation for each policy they are responsible for placing.  Commissions are not paid to Producers immediately at the policy effective date, can be subject to clawback provisions and can vary by Producer.  Producers receive the commissions for which they are entitled at the end of the month following the month in which the policy became effective.  Effective April 1, 2018, FBBI implemented a ‘pay when paid’ system.  Under the ‘pay when paid’ system, Producers receive the commissions for which they are entitled at the end of the month following the month in which FBBI receives payment from the insurance provider or customer.  Under FASB ASC Subtopic 340-40, “Other Assets and Deferred Costs: Contracts with Customers,” the commission paid to the Producers is an incremental cost of obtaining a contract, which should be capitalized and amortized in a manner consistent with the pattern of transfer of the service related to the contract acquisition asset.  Insurance contracts have a term of one year or less; therefore, Trustmark has elected the cost of obtaining a contract practical expedient allowed under FASB ASC Subtopic 340-40, which allows FBBI to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the contract asset that FBBI otherwise would have recognized is one year or less.  Commission expense is recorded as noninterest expense in salaries and employee benefits when paid to the Producers.

Commercial Insurance

Revenue from FBBI’s commercial insurance contracts (both agency billed and direct billed) consists of a set commission amount, which is subject to clawback provisions.  Revenue from commercial insurance contracts is recognized on the policy effective date, and a corresponding commission receivable is recorded concurrent with the revenue until payment is received by FBBI.  Effective April 1, 2018, FBBI utilizes a ‘pay when paid’ system to account for commercial insurance contracts.  Under the ‘pay when paid’ system, an estimated commission amount is entered in the system when a commercial insurance contract is placed.  FBBI records a top line receivable based on the estimated commission amount entered in the system each month, along with a corresponding amount recognized as revenue, and then adjusts the estimated receivable when the commissions are received from the insurance provider or customer.  

Commercial Installment Insurance

Revenue from commercial installment insurance contracts consists of a set commission amount, which is not subject to clawback provisions, and is recognized in twelve equal monthly installments when invoiced by FBBI in the agency management system.  FBBI has only a small number of commercial installment insurance contracts and these contracts all have a term of one year; therefore, recognizing the revenue from these contracts over twelve months is not materially different than recognizing the revenue in full at the policy effective date for any given period.

Effective April 1, 2018, as a result of implementing this ‘pay when paid’ system, as applied to insurance contracts, revenue from commercial installment contracts is recognized in the same manner as commercial insurance contracts.

Personal Insurance

Revenue from FBBI’s personal insurance contracts consists of a set commission amount, which is subject to clawback provisions, and is recognized when payment is received (generally 30-60 days after the policy effective date).  Personal insurance contracts have a term of one year; therefore, recognizing the revenue from these contracts when payment is received is not materially different than recognizing the revenue at the policy effective date for any given period.  

Employee Benefits Insurance

Revenue from FBBI’s employee benefits insurance contracts consists of a variable commission amount, which is not subject to clawback provisions, and is recognized when payment is received, typically on a monthly basis.  Employee benefits insurance contracts have a set commission rate, but can vary from period to period based on changes in the number of employees covered by the policy (i.e. new hires and terminations).  FBBI generally receives twelve monthly commission payments for these contracts with the initial payment being received approximately 60-90 days after the policy effective date.  Under the guidelines of FASB ASC Topic 606, commissions from employee benefits insurance contracts represent fixed consideration because at contract inception (policy effective date) there is a set commission rate times a known number of covered employees.  Changes in the number of covered employees are not known, nor can they be predicted, at contract inception.  An increase or decrease in the number of covered employees after the policy effective date is considered a contract modification resulting from a change in scope and transaction price under FASB ASC Topic 606.  This modification is treated as part of the existing contract because it does not add a distinct service.  Employee benefits insurance contracts have a term of one year; therefore, recognizing the revenue from these contracts when payment is received is not materially different than recognizing the revenue at the policy effective date or the contract modification date for any given period.

Contingency Commission Insurance

In addition to the insurance contracts discussed above, FBBI has contracts with various insurance providers for which it receives contingency income based on volume of business and claims experience.  FBBI is the principal and the insurance provider is the customer for these contingency commission insurance contracts.  The contingency commission contracts have a single continuous or stand-ready service obligation whereby FBBI places policies with policyholders when acceptable to the insurance provider, which is satisfied over time.  The contract term for these contingency commission contracts is one year.  Revenue is recognized from the contingency commission contracts monthly using a time-elapsed measure of progress.  FBBI accrues throughout the current year the amount of contingency commission income it expects to receive in the following year adjusted for a degree of uncertainty.  FBBI updates a detail by insurance provider with the contingency commission income received, which is then compared to the total amount that was expected to be received.  If actual receipts are higher or lower than the amount accrued in the prior year, the monthly accrual for the current year is adjusted accordingly.

Under the guidelines of FASB ASC Topic 606, revenue from contingency commission insurance contracts represents variable consideration and should be estimated using one of the two allowable methods subject to the variable consideration constraint.  FBBI believes the most likely amount method to be the most appropriate method for estimating the variable consideration as there are only a few possible outcomes for each contract.  

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, 2018							Three Months Ended September 30, 2017 (1)
	Topic 606		Not Topic 606 (2)			Total		Topic 606		Not Topic 606 (2)		Total
General Banking Division
Service charges on deposit accounts	$	11,074	$	—		$	11,074	$	11,222	$	—	$	11,222
Bank card and other fees		6,503		937			7,440		7,104		23		7,127
Mortgage banking, net		—		8,647			8,647		—		4,425		4,425
Wealth management		70		—			70		64		—		64
Other, net		1,685		(359	)		1,326		1,495		2,223		3,718
Security gains (losses), net		—		—			—		—		14		14
Total noninterest income	$	19,332	$	9,225		$	28,557	$	19,885	$	6,685	$	26,570
Wealth Management Division
Service charges on deposit accounts	$	1	$	—		$	1	$	1	$	—	$	1
Bank card and other fees		19		—			19		23		—		23
Wealth management		7,719		—			7,719		7,466		—		7,466
Other, net		1		29			30		—		22		22
Total noninterest income	$	7,740	$	29		$	7,769	$	7,490	$	22	$	7,512
Insurance Division
Insurance commissions	$	10,765	$	—		$	10,765	$	10,398	$	—	$	10,398
Other, net		2		—			2		—		—		—
Total noninterest income	$	10,767	$	—		$	10,767	$	10,398	$	—	$	10,398
Consolidated
Service charges on deposit accounts	$	11,075	$	—		$	11,075	$	11,223	$	—	$	11,223
Bank card and other fees		6,522		937			7,459		7,127		23		7,150
Mortgage banking, net		—		8,647			8,647		—		4,425		4,425
Insurance commissions		10,765		—			10,765		10,398		—		10,398
Wealth management		7,789		—			7,789		7,530		—		7,530
Other, net		1,688		(330	)		1,358		1,495		2,245		3,740
Security gains (losses), net		—		—			—		—		14		14
Total noninterest income	$	37,839	$	9,254		$	47,093	$	37,773	$	6,707	$	44,480

(1) Trustmark elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and maynot be comparable to current year presentation.

(2) 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 securitygains (losses), net.

	Nine Months Ended September 30, 2018						Nine Months Ended September 30, 2017 (1)
	Topic 606		Not Topic 606 (2)		Total		Topic 606		Not Topic 606 (2)		Total
General Banking Division
Service charges on deposit accounts	$	32,577	$	—	$	32,577	$	32,809	$	—	$	32,809
Bank card and other fees		19,865		1,227		21,092		20,777		208		20,985
Mortgage banking, net		—		28,958		28,958		—		23,618		23,618
Wealth management		210		—		210		210		—		210
Other, net		4,666		84		4,750		4,997		6,196		11,193
Security gains (losses), net		—		—		—		—		15		15
Total noninterest income	$	57,318	$	30,269	$	87,587	$	58,793	$	30,037	$	88,830
Wealth Management Division
Service charges on deposit accounts	$	2	$	—	$	2	$	1	$	—	$	1
Bank card and other fees		63		—		63		35		—		35
Wealth management		22,624		—		22,624		22,407		—		22,407
Other, net		3		76		79		—		70		70
Total noninterest income	$	22,692	$	76	$	22,768	$	22,443	$	70	$	22,513
Insurance Division
Insurance commissions	$	30,919	$	—	$	30,919	$	29,355	$	—	$	29,355
Other, net		3		—		3		5		—		5
Total noninterest income	$	30,922	$	—	$	30,922	$	29,360	$	—	$	29,360
Consolidated
Service charges on deposit accounts	$	32,579	$	—	$	32,579	$	32,810	$	—	$	32,810
Bank card and other fees		19,928		1,227		21,155		20,812		208		21,020
Mortgage banking, net		—		28,958		28,958		—		23,618		23,618
Insurance commissions		30,919		—		30,919		29,355		—		29,355
Wealth management		22,834		—		22,834		22,617		—		22,617
Other, net		4,672		160		4,832		5,002		6,266		11,268
Security gains (losses), net		—		—		—		—		15		15
Total noninterest income	$	110,932	$	30,345	$	141,277	$	110,596	$	30,107	$	140,703

(1) Trustmark elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and maynot be comparable to current year presentation.

(2) 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 securitygains (losses), net.

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Defined Benefit and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2018

Compensation And Retirement Disclosure [Abstract]

Defined Benefit and Other Postretirement Benefits

Note 11 – Defined Benefit and Other Postretirement Benefits

Qualified Pension Plans

Trustmark Capital Accumulation Plan

Trustmark maintained a noncontributory tax-qualified defined benefit pension plan titled the Trustmark Capital Accumulation Plan (the Plan) in which substantially all associates who began employment prior to 2007 participated.  The Plan provided for retirement benefits based on the length of credited service and final average compensation, as defined in the Plan, which vested upon three years of service.  On July 26, 2016, the Board of Directors of Trustmark authorized the termination of the Plan, effective as of December 31, 2016.  As a result of the termination of the Plan, each participant became fully vested in their accrued benefits under the Plan.  Final distributions were completed during the second quarter of 2017.  

Trustmark Corporation Pension Plan for Certain Employees of Acquired Financial Institutions

To satisfy commitments made by Trustmark to associates covered through plans obtained in acquisitions and subsequently merged into the Plan (collectively, the Continuing Associates), on July 26, 2016, the Board of Directors of Trustmark also approved the spin-off of the portion of the Plan associated with the accrued benefits of the Continuing Associates into a new plan titled the Trustmark Corporation Pension Plan for Certain Employees of Acquired Financial Institutions (the Continuing Plan), effective as of December 30, 2016, immediately prior to the termination of the Plan.

The following table presents information regarding the net periodic benefit cost for the Plan and the Continuing Plan for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Service cost	$	69		$	64		$	208		$	190
Interest cost		83			102			249			1,394
Expected return on plan assets		(57	)		(51	)		(171	)		(267	)
Recognized net loss due to lump sum settlements		41			—			121			—
Recognized net loss due to defined benefit plan termination		—			—			—			17,644
Recognized net actuarial loss		143			142			428			1,272
Net periodic benefit cost	$	279		$	257		$	835		$	20,233

For the plan year ending December 31, 2018, Trustmark’s minimum required contribution to the Continuing Plan is expected to be $243 thousand; however, Management and the Board of Directors of Trustmark will monitor the Continuing Plan throughout 2018 to determine any additional funding requirements by the plan’s measurement date, which is December 31.

Supplemental Retirement Plans

Trustmark maintains a nonqualified supplemental retirement plan covering key executive officers and senior officers as well as directors who have elected to defer fees.  The plan provides for retirement and/or death benefits based on a participant’s covered salary or deferred fees.  Although plan benefits may be paid from Trustmark’s general assets, Trustmark has purchased life insurance contracts on the participants covered under the plan, which may be used to fund future benefit payments under the plan.  The measurement date for the plan is December 31.  As a result of mergers prior to 2014, Trustmark became the administrator of small nonqualified supplemental retirement plans, for which the plan benefits were frozen prior to the merger date.

The following table presents information regarding the net periodic benefit cost for Trustmark’s nonqualified supplemental retirement plans for the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Service cost	$	29	$	36	$	87	$	106
Interest cost		457		514		1,409		1,589
Amortization of prior service cost		63		63		188		188
Recognized net actuarial loss		218		214		664		651
Net periodic benefit cost	$	767	$	827	$	2,348	$	2,534

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Stock and Incentive Compensation Plans

9 Months Ended

Sep. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock and Incentive Compensation Plans

Note 12 – Stock and Incentive Compensation Plans

Trustmark has granted stock and incentive compensation awards subject to the provisions of the Stock and Incentive Compensation Plan (the Stock Plan).  Current outstanding and future grants of stock and incentive compensation awards are subject to the provisions of the Stock Plan, which is designed to provide flexibility to Trustmark regarding its ability to motivate, attract and retain the services of key associates and directors.  The Stock Plan also allows Trustmark to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and performance units to key associates and directors.

Restricted Stock Grants

Performance Awards

Trustmark’s performance awards vest over three years and are granted to Trustmark’s executive and senior management teams.  Performance awards granted vest based on performance goals of return on average tangible equity and total shareholder return.  Performance awards are valued utilizing a Monte Carlo simulation model to estimate fair value of the awards at the grant date.  These awards are recognized using the straight-line method over the requisite service period.  These awards provide for achievement shares if performance measures exceed 100%.  The restricted share agreement provides for voting rights and dividend privileges.

Time-Vested Awards

Trustmark’s time-vested awards vest over three years and are granted to members of Trustmark’s Board of Directors as well as Trustmark’s executive and senior management teams.  Time-vested awards are valued utilizing the fair value of Trustmark’s stock at the grant date.  These awards are recognized on the straight-line method over the requisite service period.

The following tables summarize the Stock Plan activity for the periods presented:

	Three Months Ended September 30, 2018
	Performance Awards		Time-Vested Awards
Nonvested shares, beginning of period		177,695		322,528
Granted		—		1,500
Released from restriction		—		(400	)
Forfeited		—		(764	)
Nonvested shares, end of period		177,695		322,864

	Nine Months Ended September 30, 2018
	Performance Awards			Time-Vested Awards
Nonvested shares, beginning of period		213,516			320,357
Granted		51,174			118,325
Released from restriction		(55,351	)		(107,180	)
Forfeited		(31,644	)		(8,638	)
Nonvested shares, end of period		177,695			322,864

The following table presents information regarding compensation expense for awards under the Stock Plan for the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Performance awards	$	435	$	435	$	725	$	959
Time-vested awards		723		641		2,297		2,291
Total compensation expense	$	1,158	$	1,076	$	3,022	$	3,250

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Contingencies

9 Months Ended

Sep. 30, 2018

Commitments And Contingencies Disclosure [Abstract]

Contingencies

Note 13 – Contingencies

Lending Related

Trustmark makes commitments to extend credit and issues standby and commercial letters of credit (letters of credit) in the normal course of business in order to fulfill the financing needs of its customers.  The carrying amount of commitments to extend credit and letters of credit approximates the fair value of such financial instruments.

Commitments to extend credit are agreements to lend money to customers pursuant to certain specified conditions.  Commitments generally have fixed expiration dates or other termination clauses.  Because many of these commitments are expected to expire without being fully drawn upon, the total commitment amounts do not necessarily represent future cash requirements.  The exposure to credit loss in the event of nonperformance by the other party to the commitments to extend credit is represented by the contract amount of those instruments.  Trustmark applies the same credit policies and standards as it does in the lending process when making these commitments.  The collateral obtained is based upon the nature of the transaction and the assessed creditworthiness of the borrower.  At September 30, 2018 and 2017, Trustmark had unused commitments to extend credit of $3.666 billion and $3.143 billion, respectively.

Letters of credit are conditional commitments issued by Trustmark to insure the performance of a customer to a third-party.  A financial standby letter of credit irrevocably obligates Trustmark to pay a third-party beneficiary when a customer fails to repay an outstanding loan or debt instrument.  A performance standby letter of credit irrevocably obligates Trustmark to pay a third-party beneficiary when a customer fails to perform some contractual, nonfinancial obligation.  When issuing letters of credit, Trustmark uses the same policies regarding credit risk and collateral, which are followed in the lending process.  At September 30, 2018 and 2017, Trustmark’s maximum exposure to credit loss in the event of nonperformance by the other party for letters of credit was $102.9 million and $105.6 million, respectively.  These amounts consist primarily of commitments with maturities of less than three years, which have an immaterial carrying value.  Trustmark holds collateral to support standby letters of credit when deemed necessary.  As of September 30, 2018 and 2017, the fair value of collateral held was $31.2 million and $30.2 million, respectively.

Legal Proceedings

Trustmark’s wholly-owned subsidiary, TNB, has been named as a defendant in three lawsuits related to the collapse of the Stanford Financial Group.  The first is a purported class action complaint that was filed on August 23, 2009 in the District Court of Harris County, Texas, by Peggy Roif Rotstain, Guthrie Abbott, Catherine Burnell, Steven Queyrouze, Jaime Alexis Arroyo Bornstein and Juan C. Olano (collectively, Class Plaintiffs), on behalf of themselves and all others similarly situated, naming TNB and four other financial institutions unaffiliated with Trustmark as defendants.  The complaint seeks to recover (i) alleged fraudulent transfers from each of the defendants in the amount of fees and other monies received by each defendant from entities controlled by R. Allen Stanford (collectively, the Stanford Financial Group) and (ii) damages allegedly attributable to alleged conspiracies by one or more of the defendants with the Stanford Financial Group to commit fraud and/or aid and abet fraud on the asserted grounds that defendants knew or should have known the Stanford Financial Group was conducting an illegal and fraudulent scheme.  Plaintiffs have demanded a jury trial.  Plaintiffs did not quantify damages.  

In November 2009, the lawsuit was removed to federal court by certain defendants and then transferred by the United States Panel on Multidistrict Litigation to federal court in the Northern District of Texas (Dallas) where multiple Stanford related matters are being consolidated for pre-trial proceedings.  In May 2010, all defendants (including TNB) filed motions to dismiss the lawsuit.  In August 2010, the court authorized and approved the formation of an Official Stanford Investors Committee (OSIC) to represent the interests of Stanford investors and, under certain circumstances, to file legal actions for the benefit of Stanford investors.  In December 2011, the OSIC filed a motion to intervene in this action.  In September 2012, the district court referred the case to a magistrate judge for hearing and determination of certain pretrial issues.  In December 2012, the court granted the OSIC’s motion to intervene, and the OSIC filed an Intervenor Complaint against one of the other defendant financial institutions.  In February 2013, the OSIC filed a second Intervenor Complaint that asserts claims against TNB and the remaining defendant financial institutions.  The OSIC seeks to recover: (i) alleged fraudulent transfers in the amount of the fees each of the defendants allegedly received from Stanford Financial Group, the profits each of the defendants allegedly made from Stanford Financial Group deposits, and other monies each of the defendants allegedly received from Stanford Financial Group; (ii) damages attributable to alleged conspiracies by each of the defendants with the Stanford Financial Group to commit fraud and/or aid and abet fraud and conversion on the asserted grounds that the defendants knew or should have known the Stanford Financial Group was conducting an illegal and fraudulent scheme; and (iii) punitive damages.  The OSIC did not quantify damages.  

In July 2013, all defendants (including TNB) filed motions to dismiss the OSIC’s claims.  In March 2015, the court entered an order authorizing the parties to conduct discovery regarding class certification, staying all other discovery and setting a deadline for the parties to complete briefing on class certification issues.  In April 2015, the court granted in part and denied in part the defendants’ motions to dismiss the Class Plaintiffs’ claims and the OSIC’s claims.  The court dismissed all of the Class Plaintiffs’ fraudulent transfer claims and dismissed certain of the OSIC’s claims.  The court denied the motions by TNB and the other financial institution defendants to dismiss the OSIC’s constructive fraudulent transfer claims.  

On June 23, 2015, the court allowed the Class Plaintiffs to file a Second Amended Class Action Complaint (SAC), which asserted new claims against TNB and certain of the other defendants for (i) aiding, abetting and participating in a fraudulent scheme, (ii) aiding, abetting and participating in violations of the Texas Securities Act, (iii) aiding, abetting and participating in breaches of fiduciary duty, (iv) aiding, abetting and participating in conversion and (v) conspiracy.  On July 14, 2015, the defendants (including TNB) filed motions to dismiss the SAC and to reconsider the court’s prior denial to dismiss the OSIC’s constructive fraudulent transfer claims against TNB and the other financial institutions that are defendants in the action.  On July 27, 2016, the court denied the motion by TNB and the other financial institution defendants to dismiss the SAC and also denied the motion by TNB and the other financial institution defendants to reconsider the court’s prior denial to dismiss the OSIC’s constructive fraudulent transfer claims.  On August 24, 2016, TNB filed its answer to the SAC.  On October 20, 2017, the OSIC filed a motion seeking an order lifting the discovery stay and establishing a trial schedule.  On November 7, 2017, the court denied the OSIC’s motion seeking class certification and designation of class representatives and counsel, finding that common issues of fact did not predominate.  The court granted the OSIC’s motion to lift the discovery stay that it had previously ordered.

The second Stanford-related lawsuit was filed on December 14, 2009 in the District Court of Ascension Parish, Louisiana, individually by Harold Jackson, Paul Blaine, Carolyn Bass Smith, Christine Nichols, and Ronald and Ramona Hebert naming TNB (misnamed as Trust National Bank) and other individuals and entities not affiliated with Trustmark as defendants.  The complaint seeks to recover the money lost by these individual plaintiffs as a result of the collapse of  the Stanford Financial Group (in addition to other damages) under various theories and causes of action, including negligence, breach of contract, breach of fiduciary duty, negligent misrepresentation, detrimental reliance, conspiracy, and violation of Louisiana’s uniform fiduciary, securities, and racketeering laws.  The complaint does not quantify the amount of money the plaintiffs seek to recover.  In January 2010, the lawsuit was removed to federal court by certain defendants and then transferred by the United States Panel on Multidistrict Litigation to federal court in the Northern District of Texas (Dallas) where multiple Stanford related matters are being consolidated for pre-trial proceedings.  On March 29, 2010, the court stayed the case.  TNB filed a motion to lift the stay, which was denied on February 28, 2012.  In September 2012, the district court referred the case to a magistrate judge for hearing and determination of certain pretrial issues.

On April 11, 2016, Trustmark learned that a third Stanford-related lawsuit had been filed on that date in the Superior Court of Justice in Ontario, Canada, by The Toronto-Dominion Bank (“TD Bank”), naming TNB and three other financial institutions not affiliated with Trustmark as defendants.  The complaint seeks a declaration specifying the degree to which each of TNB and the other defendants are liable in respect of any loss and damage for which TD Bank is found to be liable in a litigation commenced against TD Bank brought by the Joint Liquidators of Stanford International Bank Limited in the Superior Court of Justice, Commercial List in Ontario, Canada (the “Joint Liquidators’ Action”), as well as contribution and indemnity in respect of any judgment, interest and costs TD Bank is ordered to pay in the Joint Liquidators’ Action.  To date, TNB has not been served in connection with this action.

TNB’s relationship with the Stanford Financial Group began as a result of Trustmark’s acquisition of a Houston-based bank in August 2006, and consisted of correspondent banking and other traditional banking services in the ordinary course of business.  All Stanford-related lawsuits are in pre-trial stages.

Trustmark and its subsidiaries are also parties to other lawsuits and other claims that arise in the ordinary course of business.  Some of the lawsuits assert claims related to the lending, collection, servicing, investment, trust and other business activities, and some of the lawsuits allege substantial claims for damages.

All pending legal proceedings described above are being vigorously contested.  In accordance FASB ASC Topic 450-20, “Loss Contingencies,” Trustmark will establish an accrued liability for litigation matters when those matters present loss contingencies that are both probable and reasonably estimable.  At the present time, Trustmark believes, based on its evaluation and the advice of legal counsel, that a loss in any such proceeding is not probable and a reasonable estimate cannot reasonably be made.

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Earnings Per Share (EPS)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share (EPS)

Note 14 – Earnings Per Share (EPS)

The following table reflects weighted-average shares used to calculate basic and diluted EPS for the periods presented (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Basic shares		67,621		67,742		67,729		67,722
Dilutive shares		175		174		147		154
Diluted shares		67,796		67,916		67,876		67,876

Weighted-average antidilutive stock awards were excluded in determining diluted EPS. The following table reflects weighted-average antidilutive stock awards for the periods presented (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Weighted-average antidilutive stock awards		8		6		87		72

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Statements of Cash Flows

9 Months Ended

Sep. 30, 2018

Supplemental Cash Flow Information [Abstract]

Statements of Cash Flows

Note 15 – Statements of Cash Flows

The following table reflects specific transaction amounts for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2018		2017
Income taxes paid	$	11,629	$	1,423
Interest expense paid on deposits and borrowings		46,506		28,266
Noncash transfers from loans to other real estate		10,368		7,006
Transfer of long-term FHLB advances to short-term		—		250,038
Assets acquired in business combination		—		196,265
Liabilities acquired in business combination		—		184,949

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Shareholders' Equity

9 Months Ended

Sep. 30, 2018

Stockholders Equity Note [Abstract]

Shareholders' Equity

Note 16 – Shareholders’ Equity

Regulatory Capital

Trustmark and TNB are subject to minimum risk-based capital and leverage capital requirements, as described in the section captioned “Capital Adequacy” included in Part I. Item 1. – Business of Trustmark’s 2017 Annual Report on Form 10-K, which are administered by the federal bank regulatory agencies.  These capital requirements, as defined by federal regulations, involve quantitative and qualitative measures of assets, liabilities and certain off-balance sheet instruments.  Trustmark’s and TNB’s minimum risk-based capital requirements include the phased in capital conservation buffer of 1.875% at September 30, 2018 and 1.250% at December 31, 2017.  Accumulated other comprehensive loss, net of tax, is not included in computing regulatory capital.  Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements of Trustmark and TNB and limit Trustmark’s and TNB’s ability to pay dividends.  As of September 30, 2018, Trustmark and TNB exceeded all applicable minimum capital standards.  In addition, Trustmark and TNB met applicable regulatory guidelines to be considered well-capitalized at September 30, 2018.  To be categorized in this manner, Trustmark and TNB maintained minimum common equity Tier 1 risk-based capital, Tier 1 risk-based capital, total risk-based capital and Tier 1 leverage ratios as set forth in the accompanying table, and were not subject to any written agreement, order or capital directive, or prompt corrective action directive issued by their primary federal regulators to meet and maintain a specific capital level for any capital measures.  There are no significant conditions or events that have occurred since September 30, 2018, which Management believes have affected Trustmark’s or TNB’s present classification.

The following table provides Trustmark’s and TNB’s actual regulatory capital amounts and ratios under regulatory capital standards in effect at September 30, 2018 and December 31, 2017 ($ in thousands):

	Actual
	Regulatory Capital					Minimum			To Be Well
	Amount		Ratio			Requirement			Capitalized
At September 30, 2018:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,302,859		12.20	%		6.375	%	n/a
Trustmark National Bank		1,344,029		12.59	%		6.375	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,362,859		12.76	%		7.875	%	n/a
Trustmark National Bank		1,344,029		12.59	%		7.875	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,453,447		13.61	%		9.875	%	n/a
Trustmark National Bank		1,434,617		13.44	%		9.875	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,362,859		10.41	%		4.00	%	n/a
Trustmark National Bank		1,344,029		10.29	%		4.00	%		5.00	%
At December 31, 2017:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,243,240		11.77	%		5.750	%	n/a
Trustmark National Bank		1,284,575		12.16	%		5.750	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,303,238		12.33	%		7.250	%	n/a
Trustmark National Bank		1,284,575		12.16	%		7.250	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,384,050		13.10	%		9.250	%	n/a
Trustmark National Bank		1,365,387		12.93	%		9.250	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,303,238		9.67	%		4.00	%	n/a
Trustmark National Bank		1,284,575		9.54	%		4.00	%		5.00	%

Stock Repurchase Program

On March 11, 2016, the Board of Directors of Trustmark authorized a stock repurchase program under which $100.0 million of Trustmark’s outstanding common stock may be acquired through March 31, 2019.  The shares may be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, depending on market conditions.  Trustmark repurchased approximately 243 thousand shares of its common stock valued at $7.9 million during the nine months ended September 30, 2018, compared to no shares repurchased during the nine months ended September 30, 2017.  

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss

The following tables present the net change in the components of accumulated other comprehensive loss and the related tax effects allocated to each component for the periods presented ($ in thousands).  Reclassification adjustments related to securities available for sale are included in security gains (losses), net in the accompanying consolidated statements of income.  The amortization of prior service cost, recognized net loss due to lump sum settlements, change in net actuarial loss and recognized net loss due to defined benefit plan termination on pension and other postretirement benefit plans are included in the computation of net periodic benefit cost (see Note 11 – Defined Benefit and Other Postretirement Benefits for additional details).  Reclassification adjustments related to pension and other postretirement benefit plans are included in salaries and employee benefits, defined benefit plan termination and other expense in the accompanying consolidated statements of income.  Reclassification adjustments related to the cash flow hedge derivative are included in other interest expense in the accompanying consolidated statements of income.

	Three Months Ended September 30, 2018									Three Months Ended September 30, 2017
	Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount			Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred securities:
Net unrealized holding gains (losses) arising    during the period	$	(9,660	)	$	2,414		$	(7,246	)	$	(535	)	$	204		$	(331	)
Reclassification adjustment for net (gains) losses    realized in net income		—			—			—			(14	)		6			(8	)
Change in net unrealized holding loss on    securities transferred to held to maturity		973			(243	)		730			1,130			(432	)		698
Total securities available for sale    and transferred securities		(8,687	)		2,171			(6,516	)		581			(222	)		359
Pension and other postretirement benefit plans:
Net change in prior service costs		63			(16	)		47			63			(24	)		39
Recognized net loss due to lump sum settlements		41			(10	)		31			—			—			—
Change in net actuarial loss		361			(90	)		271			356			(137	)		219
Total pension and other postretirement benefit    plans		465			(116	)		349			419			(161	)		258
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective    cash flow hedge derivatives		52			(13	)		39			53			(20	)		33
Reclassification adjustment for (gain) loss realized    in net income		(104	)		25			(79	)		55			(21	)		34
Total cash flow hedge derivatives		(52	)		12			(40	)		108			(41	)		67
Total other comprehensive income (loss)	$	(8,274	)	$	2,067		$	(6,207	)	$	1,108		$	(424	)	$	684

	Nine Months Ended September 30, 2018									Nine Months Ended September 30, 2017
	Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount			Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred securities:
Net unrealized holding gains (losses) arising    during the period	$	(46,974	)	$	11,743		$	(35,231	)	$	6,335		$	(2,423	)	$	3,912
Reclassification adjustment for net (gains) losses    realized in net income		—			—			—			(15	)		6			(9	)
Change in net unrealized holding loss on    securities transferred to held to maturity		2,909			(727	)		2,182			3,551			(1,358	)		2,193
Total securities available for sale    and transferred securities		(44,065	)		11,016			(33,049	)		9,871			(3,775	)		6,096
Pension and other postretirement benefit plans:
Net change in prior service costs		188			(48	)		140			188			(72	)		116
Recognized net loss due to lump sum settlements		121			(29	)		92			—			—			—
Change in net actuarial loss		1,092			(273	)		819			1,923			(736	)		1,187
Recognized net loss due to defined benefit plan    termination		—			—			—			16,991			(6,499	)		10,492
Total pension and other postretirement benefit    plans		1,401			(350	)		1,051			19,102			(7,307	)		11,795
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective    cash flow hedge derivatives		611			(153	)		458			(99	)		38			(61	)
Reclassification adjustment for (gain) loss realized    in net income		(209	)		52			(157	)		232			(89	)		143
Total cash flow hedge derivatives		402			(101	)		301			133			(51	)		82
Total other comprehensive income (loss)	$	(42,262	)	$	10,565		$	(31,697	)	$	29,106		$	(11,133	)	$	17,973

The following table presents the changes in the balances of each component of accumulated other comprehensive loss for the periods presented ($ in thousands).  All amounts are presented net of tax.

	Securities Availablefor Sale and Transferred Securities			Defined Benefit Pension Items			Cash Flow Hedge Derivatives			Total
Balance at January 1, 2018	$	(26,535	)	$	(13,468	)	$	278		$	(39,725	)
Other comprehensive income (loss) before reclassification		(33,049	)		—			458			(32,591	)
Amounts reclassified from accumulated other    comprehensive loss		—			1,051			(157	)		894
Net other comprehensive income (loss)		(33,049	)		1,051			301			(31,697	)
Reclassification of certain income tax effects related to the change    in the federal statutory income tax rate under the Tax Cuts and    Jobs Act of 2017 (Tax Reform Act)		(5,694	)		(2,890	)		60			(8,524	)
Balance at September 30, 2018	$	(65,278	)	$	(15,307	)	$	639		$	(79,946	)
Balance at January 1, 2017	$	(20,800	)	$	(24,980	)	$	(18	)	$	(45,798	)
Other comprehensive income (loss) before reclassification		6,105			—			(61	)		6,044
Amounts reclassified from accumulated other    comprehensive loss		(9	)		11,795			143			11,929
Net other comprehensive income (loss)		6,096			11,795			82			17,973
Balance at September 30, 2017	$	(14,704	)	$	(13,185	)	$	64		$	(27,825	)

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Fair Value

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value

Note 17 – Fair Value

Financial Instruments Measured at Fair Value

The methodologies Trustmark uses in determining the fair values are based primarily on the use of independent, market-based data to reflect a value that would be reasonably expected upon exchange of the position in an orderly transaction between market participants at the measurement date.  The predominant portion of assets that are stated at fair value are of a nature that can be valued using prices or inputs that are readily observable through a variety of independent data providers.  The providers selected by Trustmark for fair valuation data are widely recognized and accepted vendors whose evaluations support the pricing functions of financial institutions, investment and mutual funds, and portfolio managers.  Trustmark has documented and evaluated the pricing methodologies used by the vendors and maintains internal processes that regularly test valuations for anomalies.

Trustmark utilizes an independent pricing service to advise it on the carrying value of the securities available for sale portfolio.  As part of Trustmark’s procedures, the price provided from the service is evaluated for reasonableness given market changes.  When a questionable price exists, Trustmark investigates further to determine if the price is valid.  If needed, other market participants may be utilized to determine the correct fair value.  Trustmark has also reviewed and confirmed its determinations in thorough discussions with the pricing source regarding their methods of price discovery.

Mortgage loan commitments are valued based on the securities prices of similar collateral, term, rate and delivery for which the loan is eligible to deliver in place of the particular security.  Trustmark acquires a broad array of mortgage security prices that are supplied by a market data vendor, which in turn accumulates prices from a broad list of securities dealers.  Prices are processed through a mortgage pipeline management system that accumulates and segregates all loan commitment and forward-sale transactions according to the similarity of various characteristics (maturity, term, rate, and collateral).  Prices are matched to those positions that are deemed to be an eligible substitute or offset (i.e., “deliverable”) for a corresponding security observed in the market place.

Trustmark estimates fair value of the MSR through the use of prevailing market participant assumptions and market participant valuation processes.  This valuation is periodically tested and validated against other third-party firm valuations.

Trustmark obtains the fair value of interest rate swaps from a third-party pricing service that uses an industry standard discounted cash flow methodology.  In addition, credit valuation adjustments are incorporated in the fair values to account for potential nonperformance risk.  In adjusting the fair value of its interest rate swap contracts for the effect of nonperformance risk, Trustmark has considered any applicable credit enhancements such as collateral postings, thresholds, mutual puts, and guarantees.  In conjunction with the FASB’s fair value measurement guidance, Trustmark made an accounting policy election to measure the credit risk of these derivative financial instruments, which are subject to master netting agreements, on a net basis by counterparty portfolio.

Trustmark has determined that the majority of the inputs used to value its interest rate swaps offered to qualified commercial borrowers fall within Level 2 of the fair value hierarchy, while the credit valuation adjustments associated with these derivatives utilize Level 3 inputs, such as estimates of current credit spreads.  Trustmark has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its interest rate swaps and has determined that the credit valuation adjustment is not significant to the overall valuation of these derivatives.  As a result, Trustmark classifies its interest rate swap valuations in Level 2 of the fair value hierarchy.

Trustmark also utilizes exchange-traded derivative instruments such as Treasury note futures contracts and option contracts to achieve a fair value return that offsets the changes in fair value of the MSR attributable to interest rates.  Fair values of these derivative instruments are determined from quoted prices in active markets for identical assets therefore allowing them to be classified within Level 1 of the fair value hierarchy.  In addition, Trustmark utilizes derivative instruments such as interest rate lock commitments in its mortgage banking area which lack observable inputs for valuation purposes resulting in their inclusion in Level 3 of the fair value hierarchy.

At this time, Trustmark presents no fair values that are derived through internal modeling.  Should positions requiring fair valuation arise that are not relevant to existing methodologies, Trustmark will make every reasonable effort to obtain market participant assumptions, or independent evaluation.

Financial Assets and Liabilities

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value ($ in thousands).  There were no transfers between fair value levels for the nine months ended September 30, 2018 and the year ended December 31, 2017.

	September 30, 2018
	Total		Level 1			Level 2		Level 3
U.S. Government agency obligations	$	32,371	$	—		$	32,371	$	—
Obligations of states and political subdivisions		57,264		—			57,264		—
Mortgage-backed securities		1,774,998		—			1,774,998		—
Securities available for sale		1,864,633		—			1,864,633		—
Loans held for sale		182,664		—			182,664		—
Mortgage servicing rights		101,374		—			—		101,374
Other assets - derivatives		3,287		(1,531	)		3,925		893
Other liabilities - derivatives		4,311		1,070			3,241		—

	December 31, 2017
	Total		Level 1			Level 2		Level 3
U.S. Government agency obligations	$	45,285	$	—		$	45,285	$	—
Obligations of states and political subdivisions		79,229		—			79,229		—
Mortgage-backed securities		2,114,121		—			2,114,121		—
Securities available for sale		2,238,635		—			2,238,635		—
Loans held for sale		180,512		—			180,512		—
Mortgage servicing rights		84,269		—			—		84,269
Other assets - derivatives		1,516		(1,013	)		1,629		900
Other liabilities - derivatives		2,678		616			2,062		—

The changes in Level 3 assets measured at fair value on a recurring basis for the nine months ended September 30, 2018 and 2017 are summarized as follows ($ in thousands):

	MSR			Other Assets - Derivatives
Balance, January 1, 2018	$	84,269		$	900
Total net (loss) gain included in Mortgage banking, net (1)		4,857			3,345
Additions		12,248			—
Sales		—			(3,352	)
Balance, September 30, 2018	$	101,374		$	893
The amount of total gains (losses) for the period included in earnings    that are attributable to the change in unrealized gains or    losses still held at September 30, 2018	$	13,879		$	247
Balance, January 1, 2017	$	80,239		$	1,001
Total net (loss) gain included in Mortgage banking, net (1)		(10,392	)		3,436
Additions		11,630			—
Sales		—			(3,431	)
Balance, September 30, 2017	$	81,477		$	1,006
The amount of total gains (losses) for the period included in    earnings that are attributable to the change in unrealized    gains or losses still held at September 30, 2017	$	(2,218	)	$	(1,483	)

(1) Total net (loss) gain included in Mortgage banking, net relating to the MSR includes changes in fair value due to market changes and due to run-off.

Trustmark may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP.  Assets at September 30, 2018, which have been measured at fair value on a nonrecurring basis, include impaired LHFI.  Loans for which it is probable Trustmark will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement are considered impaired.  Specific allowances for impaired LHFI are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s original effective interest rate, the fair value of the collateral or the observable market prices of the loans.  Impaired LHFI are primarily collateral dependent loans and are assessed using a fair value approach.  Fair value estimates for collateral dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised, normally from recently received and reviewed appraisals.  Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property.  These appraisals are reviewed by Trustmark’s Appraisal Review Department to ensure they are acceptable.  Appraised values are adjusted down for costs associated with asset disposal.  At September 30, 2018, Trustmark had outstanding balances of $52.5 million in impaired LHFI that were individually evaluated for impairment and written down to the fair value of the underlying collateral less cost to sell based on the fair value of the collateral or other unobservable input compared to $48.9 million at December 31, 2017.  These individually evaluated impaired LHFI are classified as Level 3 in the fair value hierarchy.  Impaired LHFI are periodically reviewed and evaluated for additional impairment and adjusted accordingly based on the same factors identified above.

Nonfinancial Assets and Liabilities

Certain nonfinancial assets measured at fair value on a nonrecurring basis include foreclosed assets (upon initial recognition or subsequent impairment), nonfinancial assets and nonfinancial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other nonfinancial long-lived assets measured at fair value for impairment assessment.

Other real estate includes assets that have been acquired in satisfaction of debt through foreclosure and is carried at the lower of cost or estimated fair value.  Fair value is based on independent appraisals and other relevant factors.  In the determination of fair value subsequent to foreclosure, Management also considers other factors or recent developments, such as changes in market conditions from the time of valuation and anticipated sales values considering plans for disposition, which could result in an adjustment to lower the collateral value estimates indicated in the appraisals.  Periodic revaluations are classified as Level 3 in the fair value hierarchy since assumptions are used that may not be observable in the market.

Foreclosed assets of $18.4 million were remeasured during the first nine months of 2018, requiring write-downs of $1.9 million to reach their current fair values compared to $22.0 million of foreclosed assets that were remeasured during the first nine months of 2017, requiring write-downs of $2.6 million.

Fair Value of Financial Instruments

FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. A detailed description of the valuation methodologies used in estimating the fair value of financial instruments can be found in Note 18 – Fair Value included in Item 8 of Trustmark’s Annual Report on Form 10-K for the year ended December 31, 2017.

The carrying amounts and estimated fair values of financial instruments at September 30, 2018 and December 31, 2017, are as follows ($ in thousands):

	September 30, 2018				December 31, 2017
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Level 2 Inputs:
Cash and short-term investments	$	433,471	$	433,471	$	336,383	$	336,383
Securities held to maturity		943,883		907,317		1,056,486		1,046,247
Level 3 Inputs:
Net LHFI		8,658,156		8,560,091		8,493,234		8,507,469
Net acquired loans		130,901		130,901		257,438		257,438
Financial Liabilities:
Level 2 Inputs:
Deposits		10,956,910		10,953,348		10,577,512		10,577,858
Short-term liabilities		676,888		676,888		1,440,876		1,440,876
Long-term FHLB advances		896		831		946		946
Junior subordinated debt securities		61,856		53,815		61,856		45,773

In cases where quoted market prices are not available, fair values are generally based on estimates using present value techniques.  Trustmark’s premise in present value techniques is to represent the fair values on a basis of replacement value of the existing instrument given observed market rates on the measurement date.  These techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.  In that regard, the derived fair value estimates for those assets or liabilities cannot necessarily be substantiated by comparison to independent markets and, in many cases, may not be realizable in immediate settlement of the instruments.  The estimated fair value of financial instruments with immediate and shorter-term maturities (generally 90 days or less) is assumed to be the same as the recorded book value.  All nonfinancial instruments, by definition, have been excluded from these disclosure requirements.  Accordingly, the aggregate fair value amounts presented do not represent the underlying value of Trustmark.

On January 1, 2018, Trustmark adopted ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (An Amendment of the FASB Accounting Standards Codification)”, which required the use of the exit price notion when measuring the fair value of the LHFI portfolio.  Please refer to Note 20 – Accounting Policies Recently Adopted and Pending Accounting Pronouncements for more information.

Fair Value Option

Trustmark has elected to account for its mortgage LHFS under the fair value option, with interest income on these mortgage LHFS reported in interest and fees on LHFS and LHFI.  The fair value of the mortgage LHFS is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan.  The mortgage LHFS are actively managed and monitored and certain market risks of the loans may be mitigated through the use of derivatives.  These derivative instruments are carried at fair value with changes in fair value recorded in noninterest income in mortgage banking, net.  The changes in the fair value of the LHFS are largely offset by changes in the fair value of the derivative instruments.  For the three and nine months ended September 30, 2018, a net loss of $1.3 million and a net gain of $416 thousand, respectively, was recorded in noninterest income in mortgage banking, net for changes in the fair value of the LHFS accounted for under the fair value option, compared to a net loss of $202 thousand and a net gain of $3.5 million for the three and nine months ended September 30, 2017, respectively.  Interest and fees on LHFS and LHFI for the three and nine months ended September 30, 2018 included $1.5 million and $3.8 million, respectively, of interest earned on the LHFS accounted for under the fair value option, compared to $1.4 million and $3.7 million for the three and nine months ended September 30, 2017, respectively.  Election of the fair value option allows Trustmark to reduce the accounting volatility that would otherwise result from the asymmetry created by accounting for the financial instruments at the lower of cost or fair value and the derivatives at fair value.  The fair value option election does not apply to the GNMA optional repurchase loans which do not meet the requirements under FASB ASC Topic 825 to be accounted for under the fair value option.  GNMA optional repurchase loans totaled $47.8 million and $48.2 million at September 30, 2018 and December 31, 2017, respectively, and are included in LHFS on the accompanying consolidated balance sheets.

The following table provides information about the fair value and the contractual principal outstanding of the LHFS accounted for under the fair value option as of September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018		December 31, 2017
Fair value of LHFS	$	134,874	$	132,300
LHFS contractual principal outstanding		134,598		129,347
Fair value less unpaid principal	$	276	$	2,953

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 18 – Derivative Financial Instruments

Derivatives Designated as Hedging Instruments

On April 4, 2013, Trustmark entered into a forward interest rate swap contract on junior subordinated debentures with a total notional amount of $60.0 million.  The interest rate swap contract was designated as a derivative instrument in a cash flow hedge under FASB ASC Topic 815, “Derivatives and Hedging,” with the objective of protecting the quarterly interest payments on Trustmark’s $60.0 million of junior subordinated debentures issued to Trustmark Preferred Capital Trust I throughout the five-year period beginning December 31, 2014 and ending December 31, 2019 from the risk of variability of those payments resulting from changes in the three-month LIBOR interest rate.  Under the swap, which became effective on December 31, 2014, Trustmark will pay a fixed interest rate of 1.66% and receive a variable interest rate based on three-month LIBOR on a total notional amount of $60.0 million, with quarterly net settlements.

No ineffectiveness related to the interest rate swap designated as a cash flow hedge was recognized in the consolidated statements of income for the nine months ended September 30, 2018 and 2017.  The accumulated net after-tax gain related to the effective cash flow hedge included in accumulated other comprehensive loss totaled $639 thousand at September 30, 2018 compared to a net after-tax gain of $278 thousand at December 31, 2017.  Amounts reported in accumulated other comprehensive loss related to this derivative are reclassified to other interest expense as interest payments are made on Trustmark’s variable rate junior subordinated debentures.  During the next twelve months, Trustmark estimates that $644 thousand will be reclassified as a decrease to other interest expense.

Derivatives not Designated as Hedging Instruments

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that economically hedges changes in the fair value of the MSR attributable to interest rates.  These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting.  The total notional amount of these derivative instruments were $252.0 million at September 30, 2018 compared to $349.0 million at December 31, 2017.  Changes in the fair value of these exchange-traded derivative instruments are recorded in noninterest income in mortgage banking, net and are offset by changes in the fair value of the MSR.  The impact of this strategy resulted in a net positive ineffectiveness of $72 thousand and a net negative ineffectiveness of $2.6 million for the three months ended September 30, 2018 and 2017, respectively. For the nine months ended September 30, 2018 and 2017, the impact was a net positive ineffectiveness of $3.5 million and $1.0 million, respectively.

As part of Trustmark’s risk management strategy in the mortgage banking area, derivative instruments such as forward sales contracts are utilized.  Trustmark’s obligations under forward sales contracts consist of commitments to deliver mortgage loans, originated and/or purchased, in the secondary market at a future date.  Changes in the fair value of these derivative instruments are recorded in noninterest income in mortgage banking, net and are offset by changes in the fair value of LHFS.  Trustmark’s off-balance sheet obligations under these derivative instruments totaled $199.5 million at September 30, 2018, with a positive valuation adjustment of $930 thousand, compared to $182.1 million, with a negative valuation adjustment of $237 thousand, at December 31, 2017.

Trustmark also utilizes derivative instruments such as interest rate lock commitments in its mortgage banking area.  Interest rate lock commitments are residential mortgage loan commitments with customers, which guarantee a specified interest rate for a specified time period.  Changes in the fair value of these derivative instruments are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of forward sales contracts.  Trustmark’s off-balance sheet obligations under these derivative instruments totaled $102.9 million at September 30, 2018, with a positive valuation adjustment of $893 thousand, compared to $83.0 million, with a positive valuation adjustment of $900 thousand, as of December 31, 2017.

Trustmark offers certain derivatives products directly to qualified commercial lending clients seeking to manage their interest rate risk.  Trustmark economically hedges interest rate swap transactions executed with commercial lending clients by entering into offsetting interest rate swap transactions with institutional derivatives market participants.  Derivatives transactions executed as part of this program are not designated as qualifying hedging relationships and are, therefore, carried at fair value with the change in fair value recorded in noninterest income in bank card and other fees.  Because these derivatives have mirror-image contractual terms, in addition to collateral provisions which mitigate the impact of non-performance risk, the changes in fair value are expected to substantially offset.  As of September 30, 2018, Trustmark had interest rate swaps with an aggregate notional amount of $410.2 million related to this program, compared to $351.9 million as of December 31, 2017.

Credit-risk-related Contingent Features

Trustmark has agreements with its financial institution counterparties that contain provisions where if Trustmark defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Trustmark could also be declared in default on its derivatives obligations.

As of September 30, 2018, Trustmark had no termination value of interest rate swaps in a liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements compared to $80 thousand at December 31, 2017.  As of September 30, 2018, Trustmark had no posted collateral against its obligations because of negotiated thresholds and minimum transfer amounts under these agreements.  If Trustmark had breached any of these triggering provisions at September 30, 2018, it could have been required to settle its obligations under the agreements at the termination value.

Credit risk participation agreements arise when Trustmark contracts with other financial institutions, as a guarantor or beneficiary, to share credit risk associated with certain interest rate swaps.  These agreements provide for reimbursement of losses resulting from a third party default on the underlying swap.  At both September 30, 2018 and December 31, 2017, Trustmark had entered into two risk participation agreements as a beneficiary with an aggregate notional amount of $13.2 million and $13.7 million, respectively.  Trustmark had entered into seven risk participation agreements as a guarantor with an aggregate notional amount of $40.3 million at September 30, 2018 compared to six risk participation agreements as a guarantor with an aggregate notional amount of $37.1 million at December 31, 2017.  The aggregate fair values of these risk participation agreements were immaterial at September 30, 2018 and December 31, 2017.

Tabular Disclosures

The following tables disclose the fair value of derivative instruments in Trustmark’s consolidated balance sheets as of September 30, 2018 and December 31, 2017 as well as the effect of these derivative instruments on Trustmark’s results of operations for the periods presented ($ in thousands):

	September 30, 2018			December 31, 2017
Derivatives in hedging relationships
Interest rate contracts:
Interest rate swaps included in other assets	$	852		$	451
Derivatives not designated as hedging instruments
Interest rate contracts:
Futures contracts included in other assets	$	(1,569	)	$	(1,088	)
Exchange traded purchased options included in other assets		38			75
OTC written options (rate locks) included in other assets		893			900
Interest rate swaps included in other assets		3,073			1,175
Credit risk participation agreements included in other assets		—			3
Forward contracts included in other liabilities		(930	)		237
Exchange traded written options included in other liabilities		1,070			616
Interest rate swaps included in other liabilities		4,170			1,819
Credit risk participation agreements included in other liabilities		1			6

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Derivatives in hedging relationships
Amount of gain (loss) reclassified from accumulated other    comprehensive loss and recognized in other interest expense	$	104		$	(55	)	$	209		$	(232	)
Derivatives not designated as hedging instruments
Amount of gain (loss) recognized in mortgage banking, net	$	(1,302	)	$	(466	)	$	(9,243	)	$	688
Amount of gain (loss) recognized in bank card and other fees		(86	)		(10	)		(41	)		(63	)

The following table discloses the amount included in other comprehensive income (loss), net of tax, for derivative instruments designated as cash flow hedges for the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Derivatives in cash flow hedging relationship
Amount of gain (loss) recognized in other comprehensive    income (loss), net of tax	$	39	$	33	$	458	$	(61	)

Trustmark’s interest rate swap derivative instruments are subject to master netting agreements, and therefore, eligible for offsetting in the consolidated balance sheets.  Trustmark has elected to not offset any derivative instruments in its consolidated balance sheets.  Information about financial instruments that are eligible for offset in the consolidated balance sheets as of September 30, 2018 and December 31, 2017 is presented in the following tables ($ in thousands):

Offsetting of Derivative Assets
As of September 30, 2018
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Received			Net Amount
Derivatives	$	3,925	$	—	$	3,925	$	(84	)	$	(950	)	$	2,891

Offsetting of Derivative Liabilities
As of September 30, 2018
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Posted		Net Amount
Derivatives	$	4,170	$	—	$	4,170	$	(84	)	$	—	$	4,086

Offsetting of Derivative Assets
As of December 31, 2017
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Received		Net Amount
Derivatives	$	1,626	$	—	$	1,626	$	(311	)	$	—	$	1,315

Offsetting of Derivative Liabilities
As of December 31, 2017
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Posted			Net Amount
Derivatives	$	1,819	$	—	$	1,819	$	(311	)	$	(100	)	$	1,408

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Segment Information

9 Months Ended

Sep. 30, 2018

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 20 – Segment Information included in Part II. Item 8. – Financial Statements and Supplementary Data, of Trustmark’s 2017 Annual Report on Form 10-K.  There have been no significant changes in Trustmark’s operating segments during the periods presented.

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,
	2018		2017		2018		2017
General Banking
Net interest income	$	106,784	$	103,408	$	313,299	$	302,613
Provision for loan losses, net		8,206		2,019		15,043		3,533
Noninterest income		28,557		26,570		87,587		88,830
Noninterest expense		89,889		88,814		267,462		284,420
Income before income taxes		37,246		39,145		118,381		103,490
Income taxes		3,536		7,130		13,430		19,772
General banking net income	$	33,710	$	32,015	$	104,951	$	83,718
Selected Financial Information
Total assets	$	13,364,636	$	13,811,335	$	13,364,636	$	13,811,335
Depreciation and amortization	$	9,759	$	9,863	$	28,959	$	28,196
Wealth Management
Net interest income	$	134	$	434	$	771	$	718
Noninterest income		7,769		7,512		22,768		22,513
Noninterest expense		7,194		6,791		19,996		20,361
Income before income taxes		709		1,155		3,543		2,870
Income taxes		177		441		886		1,098
Wealth management net income	$	532	$	714	$	2,657	$	1,772
Selected Financial Information
Total assets	$	9,411	$	6,635	$	9,411	$	6,635
Depreciation and amortization	$	64	$	30	$	116	$	104
Insurance
Net interest income	$	65	$	70	$	170	$	175
Noninterest income		10,767		10,398		30,922		29,360
Noninterest expense		8,140		7,481		24,030		22,437
Income before income taxes		2,692		2,987		7,062		7,098
Income taxes		681		1,137		1,774		2,726
Insurance net income	$	2,011	$	1,850	$	5,288	$	4,372
Selected Financial Information
Total assets	$	65,765	$	66,685	$	65,765	$	66,685
Depreciation and amortization	$	155	$	159	$	437	$	481
Consolidated
Net interest income	$	106,983	$	103,912	$	314,240	$	303,506
Provision for loan losses, net		8,206		2,019		15,043		3,533
Noninterest income		47,093		44,480		141,277		140,703
Noninterest expense		105,223		103,086		311,488		327,218
Income before income taxes		40,647		43,287		128,986		113,458
Income taxes		4,394		8,708		16,090		23,596
Consolidated net income	$	36,253	$	34,579	$	112,896	$	89,862
Selected Financial Information
Total assets	$	13,439,812	$	13,884,655	$	13,439,812	$	13,884,655
Depreciation and amortization	$	9,978	$	10,052	$	29,512	$	28,781

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Accounting Policies Recently Adopted and Pending Accounting Pronouncements

9 Months Ended

Sep. 30, 2018

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Accounting Policies Recently Adopted and Pending Accounting Pronouncements

Note 20 – Accounting Policies Recently Adopted and Pending Accounting Pronouncements

Accounting Policies Recently Adopted

Except for the changes detailed below, Trustmark has consistently applied its accounting policies to all periods presented in the accompanying consolidated financial statements.

ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.”  Issued in February 2018, ASU 2018-02 seeks to help entities reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Reform Act, enacted on December 22, 2017.  ASU 2018-02 was issued in response to concerns regarding current guidance in GAAP that requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date, even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income, rather than net income, and as a result the stranded tax effects would not reflect the appropriate tax rate.  The amendments of ASU 2018-02 allow an entity to make a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects, which is the difference between the historical corporate income tax rate of 35.0% and the newly enacted corporate income tax rate of 21.0%.  ASU 2018-02 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2018; however, public business entities are allowed to early adopt the amendments of ASU 2018-02 in any interim period for which the financial statements have not yet been issued.  The amendments of ASU 2018-02 may be applied either at the beginning of the period (annual or interim) of adoption or retrospectively to each of the period(s) in which the effect of the change in the U.S. federal corporate tax rate in the Tax Reform Act is recognized.  As a result of the re-measurement of Trustmark’s deferred tax assets following the enactment of the Tax Reform Act, accumulated other comprehensive loss included $8.5 million of stranded tax effects at December 31, 2017.  Trustmark early adopted the amendments of 2018-02 during the first quarter of 2018 and elected to reclassify the stranded tax effects from accumulated other comprehensive loss to retained earnings at the beginning of the period of adoption.  The reclassification of the stranded tax effects resulted in an $8.5 million increase in accumulated other comprehensive loss, net of tax and a corresponding increase in retained earnings.

ASU 2017-07, “Compensation-Retirement Benefits (Topic 715)-Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.”  Issued in March 2017, ASU 2017-07 is designed to improve guidance related to the presentation of defined benefit costs in the income statement.  In particular, ASU No. 2017-07 requires that an employer report the service cost component in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period.  The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented.  If a separate line item or items are used to present the other components of net benefit cost, then that line item or items must be appropriately described.  However, if a separate line item or items are not used, then the line item(s) used in the income statement to present the other components of net benefit cost must be disclosed.  Additionally, ASU 2017-07 allows only the service cost component to be eligible for capitalization, when applicable.  The amendments of ASU 2017-07 must be applied retrospectively for the presentation of the service cost component and the other components of net periodic benefit cost in the income statement and prospectively, on or after the adoption date, for capitalization of the service cost component in assets.  Management evaluated the amendments of this ASU and determined that the amendments of ASU 2017-07 would require a reclassification of the net periodic benefit cost, with the exception of the service cost component, from salaries and employee benefits to other expense on the consolidated statements of income for each period presented, which is not considered material to Trustmark’s consolidated financial statements.  Trustmark adopted the amendments of ASU 2017-07 effective January 1, 2018.  Trustmark elected the available practical expedient which allows Trustmark to use the amounts disclosed in its pension and other postretirement benefits footnote for the prior comparative periods for applying the retrospective presentation requirements.  As a result of the adoption of ASU 2017-07, Trustmark reclassified $885 thousand and $2.7 million of the net periodic benefit cost from salaries and employee benefits to other expense in the accompanying consolidated statements of income for the three and nine months ended September 30, 2018, respectively, compared to $966 thousand and $4.8 million for the three and nine months ended September 30, 2017, respectively.

ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (An Amendment of the FASB Accounting Standards Codification).”  Issued in January 2016, ASU 2016-01 is intended to enhance the reporting model for financial instruments to provide users of financial statements with improved decision-making information.  The amendments of ASU 2016-01 include: (i) requiring equity investments, except those accounted for under the equity method of accounting or those that result in the consolidation of an investee, to be measured at fair value with changes in fair value recognized in net income; (ii) requiring a qualitative assessment to identify impairment of equity investments without readily determinable fair values; (iii) eliminating the requirement to disclose the method and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet; (iv) requiring the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requiring an entity that has elected the fair value option to measure the fair value of a liability to present separately in other comprehensive income the portion of the change in the fair value resulting from a change in the instrument-specific credit risk; (vi) requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets.  The amendments of ASU 2016-01 became effective for Trustmark on January 1, 2018.  Trustmark’s investments in member bank stock, which are equity securities that do not have readily determinable fair values, are not within the scope of ASU 2016-01.  See Note 1 – Significant Accounting Policies, “Federal Home Loan Bank (FHLB) and Federal Reserve Bank of Atlanta Stock” included in Item 8 of Trustmark’s 2017 Annual Report on Form 10-K for information regarding Trustmark’s investment in member bank stock.  Adoption of the amendments of ASU 2016-01 resulted in changes to Trustmark’s fair value related disclosures, specifically amendments (iii) which eliminated the requirement to disclose the method and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet and (iv) which required the use of the exit price notion when measuring the fair value of the LHFI portfolio.  Changes to Trustmark’s fair value related disclosures are presented in Note 17 – Fair Value of this report.  The adoption of ASU 2016-01 did not have a material impact on Trustmark’s consolidated financial statements.

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” Issued in May 2014, ASU 2014-09 will add FASB ASC Topic 606, “Revenue from Contracts with Customers,” and will supersede revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” as well as certain cost guidance in FASB ASC Topic 605-35, “Revenue Recognition – Construction-Type and Production-Type Contracts.”  ASU 2014-09 provides a framework for revenue recognition that replaces the existing industry and transaction specific requirements under the existing standards.  ASU 2014-09 requires an entity to apply a five-step model to determine when to recognize revenue and at what amount.  The model specifies that revenue should be recognized when (or as) an entity transfers control of goods or services to a customer at the amount in which the entity expects to be entitled.  Depending on whether certain criteria are met, revenue should be recognized either over time, in a manner that depicts the entity’s performance, or at a point in time, when control of the goods or services are transferred to the customer.  ASU 2014-09 provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation.  In addition, the existing requirements for the recognition of a gain or loss on the transfer of non-financial assets that are not in a contract with a customer are amended to be consistent with the guidance on recognition and measurement in ASU 2014-09.  The amendments of ASU 2014-09 may be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application.  If the transition method of application is elected, the entity should also provide the additional disclosures in reporting periods that include the date of initial application of (1) the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and (2) an explanation of the reasons for significant changes.  The amendments of ASU 2014-09 and all subsequently issued ASUs, which provided additional guidance and clarifications to various aspects of FASB ASC Topic 606, became effective for Trustmark on January 1, 2018.  Trustmark elected to adopt these amendments using the modified retrospective method (cumulative effect method) of application for only those contracts not completed as of the date of adoption; therefore, comparative information has not been adjusted and continues to be reported under legacy GAAP.  Trustmark’s contracts with customers are primarily for a term of one year or less and substantially all of Trustmark’s contracts were completed as of January 1, 2018.  Management determined that approximately 23% of the revenues earned by Trustmark are within the scope of ASU 2014-09, and, for most of the revenue streams within the scope of ASU 2014-09, the amendments do not change the timing or amount of revenue recognized.  No cumulative adjustment was recorded as a result of the adoption of ASU 2014-09.  Disclosures required by the amendments of ASU 2014-09 are presented in Note 10 – Revenue from Contracts with Customers of this report.  The adoption of ASU 2014-09 did not have a material impact on Trustmark’s consolidated financial statements.  Changes in Trustmark’s accounting policies as a result of adopting the amendments of ASU 2014-09 included the following:  

Bank Card and Other Fees

Previously, Trustmark recognized interchange fee revenue from point of sale transactions in full as noninterest income in bank card and other fees and recorded a separate expense as noninterest expense in other expense for the amounts payable to the payment network.  Under the guidelines of FASB ASC Topic 606, Trustmark records the amounts payable to the payment network for point of sale transactions as noninterest income in bank card and other fees and, therefore, reports revenue from interchange fee contracts net of the considered for which Trustmark is not entitled.

Insurance Commissions

Commissions subject to clawback provisions are considered variable consideration subject to variable constraint under FASB ASC Topic 606.  Previously, FBBI recognized revenue from insurance contracts in full when the commissions were invoiced or received and recorded a negative commission amount at the time the commissions were paid back to the insurance provider as a result of a policy cancellation or lapse.  No allowance for doubtful accounts was previously recorded related to the commission revenue subject to clawback provisions.  As a result of the adoption of FASB ASC Topic 606, FBBI calculates a separate weighted-average percentage (returned commissions percentage) based on actual cancellations over the previous three years for commercial lines, bonds, and personal lines.  FBBI applies the respective returned commissions percentage to the commission revenue earned related to insurance contracts within these three lines each month to calculate the estimated returned commissions amount, which represents the variable consideration subject to variable constraint.  Revenue from insurance contracts is reported net of the estimated returned commissions amount (contra-revenue) and a corresponding liability is recorded in other liabilities.  FBBI performs an analysis of the returned commissions reserve quarterly and adjusts the reserve balance based on all available information including actual cancellations and the remaining term of the contract.  The returned commissions percentage is updated annually.  

Wealth Management

A portion of the revenue received by Trustmark from investment services and trust tax contracts are payable to third-parties for related services rendered and represents consideration for which Trustmark is not entitled under FASB ASC Topic 606.  Previously, Trustmark recognized revenue from investment services and trust tax contracts in full as noninterest income in wealth management and recorded a separate expense for services rendered related to these contracts as noninterest expense in other expense.  Under FASB ASC Topic 606, Trustmark records expenses for services rendered related to these contracts as noninterest income in wealth management (contra-revenue) and, as a result, revenue from wealth management contracts is reported net of the amount for which Trustmark is not entitled.

Pending Accounting Pronouncements

ASU 2018-15, “Intangibles-Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).”  Issued in August 2018, ASU 2018-15 aims to reduce complexity in the accounting for costs of implementing a cloud computing service arrangement.  ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license).  The amendments of ASU 2018-15 require an entity to follow the guidance in FASB ASC Subtopic 350-40, “Intangibles-Goodwill and Other-Internal-Use Software,” in order to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense.  The amendments of ASU 2018-15 also require an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement (i.e. the noncancellable period of the arrangement plus periods covered by (1) an option to extend the arrangement if the entity is reasonably certain to exercise that option, (2) an option to terminate the arrangement if the entity is reasonably certain not to exercise the option, and (3) an option to extend (or not to terminate) the arrangement in which exercise of the option is in the control of the vendor).  ASU 2018-15 also requires an entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement, and to classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element.  ASU 2018-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Trustmark does not currently have any material amount of implementation costs related to hosting arrangements that are service contracts and is not expected to have a material impact to Trustmark’s consolidated financial statements; however, Management will continue to evaluate the impact of this ASU on future hosting arrangements as well as Trustmark’s consolidated financial statements through its effective date.

ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.”  Issued in August 2018, ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.  The amendments in ASU 2018-14 remove certain disclosure requirements that are no longer considered cost beneficial, clarify the specific requirements of disclosures and add disclosure requirements identified as relevant.  The amendments of ASU 2018-14 become effective for fiscal years beginning after December 15, 2020.  Trustmark plans to adopt these amendments during the first quarter of 2021.  Management is currently assessing all the potential impacts of the amendments in ASU 2018-14 on Trustmark’s consolidated financial statements; however, the adoption of ASU 2018-14 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.”  Issued in August 2018, the amendments in this ASU remove disclosure requirements in FASB ASC Topic 820 related to (1) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; (3) the valuation processes for Level 3 fair value measurements; and (4) for non-public entities, the changes in unrealized gains and losses for the period included in earnings for recurring Level 3 fair value measurements held at the end of the reporting period. The ASU also modifies disclosure requirements such that (1) in place of a rollforward for Level 3 fair value measurements, a non-public entity is required to disclose transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities; (2) for investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date that restrictions from redemption might lapse, only if the investee has communicated the timing to the entity or announced the timing publicly; and (3) it is clear that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date.  Additionally, this ASU adds disclosure requirements for public entities about (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.  The amendments of ASU 2018-13 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Trustmark plans to adopt ASU 2018-13 during the first quarter of 2020.  Management is currently assessing all the potential impacts of the amendments in ASU 2018-13 on Trustmark’s consolidated financial statements; however, the adoption of ASU 2018-13 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.”  Issued in August 2017, ASU 2017-12 aims to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements.  The amendments in ASU 2017-12 aim to better align an entity’s risk management activities and financial reporting for hedging relationships by expanding and refining hedge accounting for both non-financial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements.  The amendments in ASU 2017-12 (i) permit hedge accounting for risk components in hedging relationships involving nonfinancial risk and interest rate risk; (ii) change the guidance for designating fair value hedges of interest rate risk and for measuring the change in fair value of the hedged item in fair value hedges of interest rate risk; (iii) continue to allow an entity to exclude option premiums and forward points from the assessment of hedge effectiveness; and (iv) permit an entity to exclude the portion of the change in fair value of a currency swap that is attributable to a cross-country basis spread from the assessment of hedge effectiveness.  The amendments of ASU 2017-12 also include targeted improvements intended to simplify the application of hedge accounting.  The amendments of ASU 2017-12 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. All transition requirements and elections must be applied to all hedging relationships existing at the date of adoption.  Trustmark plans to adopt ASU 2017-12 during the first quarter of 2019 using the required modified retrospective transition method.  Trustmark will recognize the cumulative effect of the change, if any, in the beginning balance of each affected component of equity as of January 1, 2019.  Management is currently assessing all the potential impacts of the amendments in ASU 2017-12 on Trustmark’s consolidated financial statements; however, the adoption of ASU 2017-12 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.”  Issued in March 2017, ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium.  In particular, the amendments in ASU 2017-08 require the premium to be amortized to the earliest call date.  The amendments do not, however, require an accounting change for securities held at a discount; instead, the discount continues to be amortized to maturity.  Notably, the amendments in this ASU more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities.  Securities within the scope of ASU 2017-08 are purchased debt securities that have explicit, noncontingent call features that are callable at fixed prices and on preset dates.  The amendments of ASU 2017-08 become effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018.  Trustmark plans to adopt these amendments during the first quarter of 2019.  As of September 30, 2018, Trustmark’s total unamortized premium for purchased debt securities within the scope of ASU 2017-08 was immaterial.  Management will continue to evaluate the impact this ASU will have on Trustmark’s consolidated financial statements through its effective date; however, the adoption of ASU 2017-08 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.”  Issued in January 2017, ASU 2017-04 simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test.  Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill.  In computing the implied fair value of goodwill under Step 2, an entity, prior to the amendments in ASU 2017-04, had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, in accordance with the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination.  However, under the amendments in ASU 2017-04, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.  Additionally, ASU 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test.  ASU 2017-04 is effective prospectively for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019.  Based on Trustmark’s annual goodwill impairment test performed as of October 1, 2017, the fair value of its reporting units exceeded the carrying value and, therefore, the related goodwill was not impaired.  Management will continue to evaluate the impact this ASU will have on Trustmark’s consolidated financial statements through its effective date; however, the adoption of ASU 2017-04 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”  Issued in June 2016, ASU 2016-13 will add FASB ASC Topic 326, “Financial Instruments-Credit Losses” and finalizes amendments to FASB ASC Subtopic 825-15, “Financial Instruments-Credit Losses.”  The amendments of ASU 2016-13 are intended to provide financial statement users with more decision-useful information related to expected credit losses on financial instruments and other commitments to extend credit by replacing the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates.  The amendments of ASU 2016-13 eliminate the probable initial recognition threshold and, in turn, reflect an entity’s current estimate of all expected credit losses.  ASU 2016-13 does not specify the method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate.  Additionally, the amendments of ASU 2016-13 require that credit losses on available for sale debt securities be presented as an allowance rather than as a write-down.  The amendments of ASU 2016-13 are effective for interim and annual periods beginning after December 15, 2019.  Earlier application is permitted for interim and annual periods beginning after December 15, 2018.  Trustmark has established a Current Expected Credit Loss (CECL) Steering Committee and a CECL Working Group which include the appropriate members of Management to evaluate the impact this ASU will have on Trustmark’s financial position, results of operations and financial statement disclosures and determine the most appropriate method of implementing the amendments in this ASU as well as any resources needed to implement the amendments.  Trustmark intends to adopt the amendments of ASU 2016-13 during the first quarter of 2020.  Trustmark selected a third-party vendor to provide allowance for loan loss software as well as advisory services in developing a new methodology that would be compliant with amendments of ASU 2016-13, and is working with the approved third-party vendor to develop the CECL model and evaluate the impact to Trustmark.  Trustmark is working with the third-party vendor on developing various modeling techniques and methodologies, which Management will review to determine the most appropriate model for Trustmark.  Trustmark is on schedule to fully comply with all CECL requirements within its internally established timeframe for implementation.  Management will continue to evaluate the impact this ASU will have on Trustmark’s consolidated financial statements through its effective date.

ASU 2016-02, “Leases (Topic 842).” Issued in February 2016, ASU 2016-02 was issued by the FASB to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements.  ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, the ASU contains some targeted improvements that are intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014.  The amendments of ASU 2016-02 are effective for interim and annual periods beginning after December 15, 2018.  In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842: Leases,” which provides corrections or improvements to a number of areas within Topic 842 and has the same transition guidance and effective date as ASU 2016-02. The FASB also issued ASU 2018-11, “Leases (Topic 842)-Targeted Improvements”, in July 2018, which provides entities with an additional and optional transition method to adopt the new lease standard and, for lessors only, a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component.  The amendments in ASU 2018-11 allow an entity the option to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption as opposed to at the beginning of the earliest period presented in the financial statements.  The amendments of ASU 2018-11 have the same effective date as ASU 2016-02.  Trustmark plans to adopt the amendments of ASU 2016-02 beginning in the first quarter of 2019.  At adoption, Trustmark will recognize a lease asset and a corresponding lease liability on its consolidated balance sheet for its total lease obligation measured on a discounted basis.  As of December 31, 2017, all leases in which Trustmark was the lessee were classified as operating leases and the total outstanding lease obligation was $67.9 million, or 0.5% of total assets.  Management is currently evaluating these lease obligations as potential lease assets and liabilities as defined by ASU 2016-02.  Trustmark does not anticipant any material impact to its consolidated statements of income as a result of the adoption of this ASU.  Trustmark has an immaterial amount of leases in which it is the lessor.  Based on Management’s evaluation to date, Trustmark does not expect the amendments of ASU 2016-02 to have any material impact to these leases or the related income.  Trustmark has obtained a third-party software application which will provide lease contract maintenance and lease accounting under the guidelines of FASB ASC Topic 842.  Management is currently in the process of loading all existing lease contracts into the software application.  Management will continue to evaluate the impact this ASU will have on Trustmark’s consolidated financial statements; however, the adoption of ASU 2016-02 is not expected to have a material impact on Trustmark’s consolidated financial statements.

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Accounting Policies Recently Adopted and Pending Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Accounting Policies Recently Adopted and Pending Accounting Pronouncements

Accounting Policies Recently Adopted

Except for the changes detailed below, Trustmark has consistently applied its accounting policies to all periods presented in the accompanying consolidated financial statements.

ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.”  Issued in February 2018, ASU 2018-02 seeks to help entities reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Reform Act, enacted on December 22, 2017.  ASU 2018-02 was issued in response to concerns regarding current guidance in GAAP that requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date, even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income, rather than net income, and as a result the stranded tax effects would not reflect the appropriate tax rate.  The amendments of ASU 2018-02 allow an entity to make a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects, which is the difference between the historical corporate income tax rate of 35.0% and the newly enacted corporate income tax rate of 21.0%.  ASU 2018-02 is effective for fiscal years, and interim periods within those years, beginning after December 31, 2018; however, public business entities are allowed to early adopt the amendments of ASU 2018-02 in any interim period for which the financial statements have not yet been issued.  The amendments of ASU 2018-02 may be applied either at the beginning of the period (annual or interim) of adoption or retrospectively to each of the period(s) in which the effect of the change in the U.S. federal corporate tax rate in the Tax Reform Act is recognized.  As a result of the re-measurement of Trustmark’s deferred tax assets following the enactment of the Tax Reform Act, accumulated other comprehensive loss included $8.5 million of stranded tax effects at December 31, 2017.  Trustmark early adopted the amendments of 2018-02 during the first quarter of 2018 and elected to reclassify the stranded tax effects from accumulated other comprehensive loss to retained earnings at the beginning of the period of adoption.  The reclassification of the stranded tax effects resulted in an $8.5 million increase in accumulated other comprehensive loss, net of tax and a corresponding increase in retained earnings.

ASU 2017-07, “Compensation-Retirement Benefits (Topic 715)-Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.”  Issued in March 2017, ASU 2017-07 is designed to improve guidance related to the presentation of defined benefit costs in the income statement.  In particular, ASU No. 2017-07 requires that an employer report the service cost component in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period.  The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented.  If a separate line item or items are used to present the other components of net benefit cost, then that line item or items must be appropriately described.  However, if a separate line item or items are not used, then the line item(s) used in the income statement to present the other components of net benefit cost must be disclosed.  Additionally, ASU 2017-07 allows only the service cost component to be eligible for capitalization, when applicable.  The amendments of ASU 2017-07 must be applied retrospectively for the presentation of the service cost component and the other components of net periodic benefit cost in the income statement and prospectively, on or after the adoption date, for capitalization of the service cost component in assets.  Management evaluated the amendments of this ASU and determined that the amendments of ASU 2017-07 would require a reclassification of the net periodic benefit cost, with the exception of the service cost component, from salaries and employee benefits to other expense on the consolidated statements of income for each period presented, which is not considered material to Trustmark’s consolidated financial statements.  Trustmark adopted the amendments of ASU 2017-07 effective January 1, 2018.  Trustmark elected the available practical expedient which allows Trustmark to use the amounts disclosed in its pension and other postretirement benefits footnote for the prior comparative periods for applying the retrospective presentation requirements.  As a result of the adoption of ASU 2017-07, Trustmark reclassified $885 thousand and $2.7 million of the net periodic benefit cost from salaries and employee benefits to other expense in the accompanying consolidated statements of income for the three and nine months ended September 30, 2018, respectively, compared to $966 thousand and $4.8 million for the three and nine months ended September 30, 2017, respectively.

ASU 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (An Amendment of the FASB Accounting Standards Codification).”  Issued in January 2016, ASU 2016-01 is intended to enhance the reporting model for financial instruments to provide users of financial statements with improved decision-making information.  The amendments of ASU 2016-01 include: (i) requiring equity investments, except those accounted for under the equity method of accounting or those that result in the consolidation of an investee, to be measured at fair value with changes in fair value recognized in net income; (ii) requiring a qualitative assessment to identify impairment of equity investments without readily determinable fair values; (iii) eliminating the requirement to disclose the method and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet; (iv) requiring the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requiring an entity that has elected the fair value option to measure the fair value of a liability to present separately in other comprehensive income the portion of the change in the fair value resulting from a change in the instrument-specific credit risk; (vi) requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets.  The amendments of ASU 2016-01 became effective for Trustmark on January 1, 2018.  Trustmark’s investments in member bank stock, which are equity securities that do not have readily determinable fair values, are not within the scope of ASU 2016-01.  See Note 1 – Significant Accounting Policies, “Federal Home Loan Bank (FHLB) and Federal Reserve Bank of Atlanta Stock” included in Item 8 of Trustmark’s 2017 Annual Report on Form 10-K for information regarding Trustmark’s investment in member bank stock.  Adoption of the amendments of ASU 2016-01 resulted in changes to Trustmark’s fair value related disclosures, specifically amendments (iii) which eliminated the requirement to disclose the method and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet and (iv) which required the use of the exit price notion when measuring the fair value of the LHFI portfolio.  Changes to Trustmark’s fair value related disclosures are presented in Note 17 – Fair Value of this report.  The adoption of ASU 2016-01 did not have a material impact on Trustmark’s consolidated financial statements.

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” Issued in May 2014, ASU 2014-09 will add FASB ASC Topic 606, “Revenue from Contracts with Customers,” and will supersede revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” as well as certain cost guidance in FASB ASC Topic 605-35, “Revenue Recognition – Construction-Type and Production-Type Contracts.”  ASU 2014-09 provides a framework for revenue recognition that replaces the existing industry and transaction specific requirements under the existing standards.  ASU 2014-09 requires an entity to apply a five-step model to determine when to recognize revenue and at what amount.  The model specifies that revenue should be recognized when (or as) an entity transfers control of goods or services to a customer at the amount in which the entity expects to be entitled.  Depending on whether certain criteria are met, revenue should be recognized either over time, in a manner that depicts the entity’s performance, or at a point in time, when control of the goods or services are transferred to the customer.  ASU 2014-09 provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation.  In addition, the existing requirements for the recognition of a gain or loss on the transfer of non-financial assets that are not in a contract with a customer are amended to be consistent with the guidance on recognition and measurement in ASU 2014-09.  The amendments of ASU 2014-09 may be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application.  If the transition method of application is elected, the entity should also provide the additional disclosures in reporting periods that include the date of initial application of (1) the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and (2) an explanation of the reasons for significant changes.  The amendments of ASU 2014-09 and all subsequently issued ASUs, which provided additional guidance and clarifications to various aspects of FASB ASC Topic 606, became effective for Trustmark on January 1, 2018.  Trustmark elected to adopt these amendments using the modified retrospective method (cumulative effect method) of application for only those contracts not completed as of the date of adoption; therefore, comparative information has not been adjusted and continues to be reported under legacy GAAP.  Trustmark’s contracts with customers are primarily for a term of one year or less and substantially all of Trustmark’s contracts were completed as of January 1, 2018.  Management determined that approximately 23% of the revenues earned by Trustmark are within the scope of ASU 2014-09, and, for most of the revenue streams within the scope of ASU 2014-09, the amendments do not change the timing or amount of revenue recognized.  No cumulative adjustment was recorded as a result of the adoption of ASU 2014-09.  Disclosures required by the amendments of ASU 2014-09 are presented in Note 10 – Revenue from Contracts with Customers of this report.  The adoption of ASU 2014-09 did not have a material impact on Trustmark’s consolidated financial statements.  Changes in Trustmark’s accounting policies as a result of adopting the amendments of ASU 2014-09 included the following:  

Bank Card and Other Fees

Previously, Trustmark recognized interchange fee revenue from point of sale transactions in full as noninterest income in bank card and other fees and recorded a separate expense as noninterest expense in other expense for the amounts payable to the payment network.  Under the guidelines of FASB ASC Topic 606, Trustmark records the amounts payable to the payment network for point of sale transactions as noninterest income in bank card and other fees and, therefore, reports revenue from interchange fee contracts net of the considered for which Trustmark is not entitled.

Insurance Commissions

Commissions subject to clawback provisions are considered variable consideration subject to variable constraint under FASB ASC Topic 606.  Previously, FBBI recognized revenue from insurance contracts in full when the commissions were invoiced or received and recorded a negative commission amount at the time the commissions were paid back to the insurance provider as a result of a policy cancellation or lapse.  No allowance for doubtful accounts was previously recorded related to the commission revenue subject to clawback provisions.  As a result of the adoption of FASB ASC Topic 606, FBBI calculates a separate weighted-average percentage (returned commissions percentage) based on actual cancellations over the previous three years for commercial lines, bonds, and personal lines.  FBBI applies the respective returned commissions percentage to the commission revenue earned related to insurance contracts within these three lines each month to calculate the estimated returned commissions amount, which represents the variable consideration subject to variable constraint.  Revenue from insurance contracts is reported net of the estimated returned commissions amount (contra-revenue) and a corresponding liability is recorded in other liabilities.  FBBI performs an analysis of the returned commissions reserve quarterly and adjusts the reserve balance based on all available information including actual cancellations and the remaining term of the contract.  The returned commissions percentage is updated annually.  

Wealth Management

A portion of the revenue received by Trustmark from investment services and trust tax contracts are payable to third-parties for related services rendered and represents consideration for which Trustmark is not entitled under FASB ASC Topic 606.  Previously, Trustmark recognized revenue from investment services and trust tax contracts in full as noninterest income in wealth management and recorded a separate expense for services rendered related to these contracts as noninterest expense in other expense.  Under FASB ASC Topic 606, Trustmark records expenses for services rendered related to these contracts as noninterest income in wealth management (contra-revenue) and, as a result, revenue from wealth management contracts is reported net of the amount for which Trustmark is not entitled.

Pending Accounting Pronouncements

ASU 2018-15, “Intangibles-Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force).”  Issued in August 2018, ASU 2018-15 aims to reduce complexity in the accounting for costs of implementing a cloud computing service arrangement.  ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license).  The amendments of ASU 2018-15 require an entity to follow the guidance in FASB ASC Subtopic 350-40, “Intangibles-Goodwill and Other-Internal-Use Software,” in order to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense.  The amendments of ASU 2018-15 also require an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement (i.e. the noncancellable period of the arrangement plus periods covered by (1) an option to extend the arrangement if the entity is reasonably certain to exercise that option, (2) an option to terminate the arrangement if the entity is reasonably certain not to exercise the option, and (3) an option to extend (or not to terminate) the arrangement in which exercise of the option is in the control of the vendor).  ASU 2018-15 also requires an entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement, and to classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element.  ASU 2018-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Trustmark does not currently have any material amount of implementation costs related to hosting arrangements that are service contracts and is not expected to have a material impact to Trustmark’s consolidated financial statements; however, Management will continue to evaluate the impact of this ASU on future hosting arrangements as well as Trustmark’s consolidated financial statements through its effective date.

ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans.”  Issued in August 2018, ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.  The amendments in ASU 2018-14 remove certain disclosure requirements that are no longer considered cost beneficial, clarify the specific requirements of disclosures and add disclosure requirements identified as relevant.  The amendments of ASU 2018-14 become effective for fiscal years beginning after December 15, 2020.  Trustmark plans to adopt these amendments during the first quarter of 2021.  Management is currently assessing all the potential impacts of the amendments in ASU 2018-14 on Trustmark’s consolidated financial statements; however, the adoption of ASU 2018-14 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.”  Issued in August 2018, the amendments in this ASU remove disclosure requirements in FASB ASC Topic 820 related to (1) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; (3) the valuation processes for Level 3 fair value measurements; and (4) for non-public entities, the changes in unrealized gains and losses for the period included in earnings for recurring Level 3 fair value measurements held at the end of the reporting period. The ASU also modifies disclosure requirements such that (1) in place of a rollforward for Level 3 fair value measurements, a non-public entity is required to disclose transfers into and out of Level 3 of the fair value hierarchy and purchases and issues of Level 3 assets and liabilities; (2) for investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date that restrictions from redemption might lapse, only if the investee has communicated the timing to the entity or announced the timing publicly; and (3) it is clear that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date.  Additionally, this ASU adds disclosure requirements for public entities about (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.  The amendments of ASU 2018-13 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Trustmark plans to adopt ASU 2018-13 during the first quarter of 2020.  Management is currently assessing all the potential impacts of the amendments in ASU 2018-13 on Trustmark’s consolidated financial statements; however, the adoption of ASU 2018-13 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.”  Issued in August 2017, ASU 2017-12 aims to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements.  The amendments in ASU 2017-12 aim to better align an entity’s risk management activities and financial reporting for hedging relationships by expanding and refining hedge accounting for both non-financial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements.  The amendments in ASU 2017-12 (i) permit hedge accounting for risk components in hedging relationships involving nonfinancial risk and interest rate risk; (ii) change the guidance for designating fair value hedges of interest rate risk and for measuring the change in fair value of the hedged item in fair value hedges of interest rate risk; (iii) continue to allow an entity to exclude option premiums and forward points from the assessment of hedge effectiveness; and (iv) permit an entity to exclude the portion of the change in fair value of a currency swap that is attributable to a cross-country basis spread from the assessment of hedge effectiveness.  The amendments of ASU 2017-12 also include targeted improvements intended to simplify the application of hedge accounting.  The amendments of ASU 2017-12 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. All transition requirements and elections must be applied to all hedging relationships existing at the date of adoption.  Trustmark plans to adopt ASU 2017-12 during the first quarter of 2019 using the required modified retrospective transition method.  Trustmark will recognize the cumulative effect of the change, if any, in the beginning balance of each affected component of equity as of January 1, 2019.  Management is currently assessing all the potential impacts of the amendments in ASU 2017-12 on Trustmark’s consolidated financial statements; however, the adoption of ASU 2017-12 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.”  Issued in March 2017, ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium.  In particular, the amendments in ASU 2017-08 require the premium to be amortized to the earliest call date.  The amendments do not, however, require an accounting change for securities held at a discount; instead, the discount continues to be amortized to maturity.  Notably, the amendments in this ASU more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities.  Securities within the scope of ASU 2017-08 are purchased debt securities that have explicit, noncontingent call features that are callable at fixed prices and on preset dates.  The amendments of ASU 2017-08 become effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018.  Trustmark plans to adopt these amendments during the first quarter of 2019.  As of September 30, 2018, Trustmark’s total unamortized premium for purchased debt securities within the scope of ASU 2017-08 was immaterial.  Management will continue to evaluate the impact this ASU will have on Trustmark’s consolidated financial statements through its effective date; however, the adoption of ASU 2017-08 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.”  Issued in January 2017, ASU 2017-04 simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test.  Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill.  In computing the implied fair value of goodwill under Step 2, an entity, prior to the amendments in ASU 2017-04, had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, in accordance with the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination.  However, under the amendments in ASU 2017-04, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.  Additionally, ASU 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test.  ASU 2017-04 is effective prospectively for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019.  Based on Trustmark’s annual goodwill impairment test performed as of October 1, 2017, the fair value of its reporting units exceeded the carrying value and, therefore, the related goodwill was not impaired.  Management will continue to evaluate the impact this ASU will have on Trustmark’s consolidated financial statements through its effective date; however, the adoption of ASU 2017-04 is not expected to have a material impact on Trustmark’s consolidated financial statements.

ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”  Issued in June 2016, ASU 2016-13 will add FASB ASC Topic 326, “Financial Instruments-Credit Losses” and finalizes amendments to FASB ASC Subtopic 825-15, “Financial Instruments-Credit Losses.”  The amendments of ASU 2016-13 are intended to provide financial statement users with more decision-useful information related to expected credit losses on financial instruments and other commitments to extend credit by replacing the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates.  The amendments of ASU 2016-13 eliminate the probable initial recognition threshold and, in turn, reflect an entity’s current estimate of all expected credit losses.  ASU 2016-13 does not specify the method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate.  Additionally, the amendments of ASU 2016-13 require that credit losses on available for sale debt securities be presented as an allowance rather than as a write-down.  The amendments of ASU 2016-13 are effective for interim and annual periods beginning after December 15, 2019.  Earlier application is permitted for interim and annual periods beginning after December 15, 2018.  Trustmark has established a Current Expected Credit Loss (CECL) Steering Committee and a CECL Working Group which include the appropriate members of Management to evaluate the impact this ASU will have on Trustmark’s financial position, results of operations and financial statement disclosures and determine the most appropriate method of implementing the amendments in this ASU as well as any resources needed to implement the amendments.  Trustmark intends to adopt the amendments of ASU 2016-13 during the first quarter of 2020.  Trustmark selected a third-party vendor to provide allowance for loan loss software as well as advisory services in developing a new methodology that would be compliant with amendments of ASU 2016-13, and is working with the approved third-party vendor to develop the CECL model and evaluate the impact to Trustmark.  Trustmark is working with the third-party vendor on developing various modeling techniques and methodologies, which Management will review to determine the most appropriate model for Trustmark.  Trustmark is on schedule to fully comply with all CECL requirements within its internally established timeframe for implementation.  Management will continue to evaluate the impact this ASU will have on Trustmark’s consolidated financial statements through its effective date.

ASU 2016-02, “Leases (Topic 842).” Issued in February 2016, ASU 2016-02 was issued by the FASB to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements.  ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, the ASU contains some targeted improvements that are intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014.  The amendments of ASU 2016-02 are effective for interim and annual periods beginning after December 15, 2018.  In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842: Leases,” which provides corrections or improvements to a number of areas within Topic 842 and has the same transition guidance and effective date as ASU 2016-02. The FASB also issued ASU 2018-11, “Leases (Topic 842)-Targeted Improvements”, in July 2018, which provides entities with an additional and optional transition method to adopt the new lease standard and, for lessors only, a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component.  The amendments in ASU 2018-11 allow an entity the option to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption as opposed to at the beginning of the earliest period presented in the financial statements.  The amendments of ASU 2018-11 have the same effective date as ASU 2016-02.  Trustmark plans to adopt the amendments of ASU 2016-02 beginning in the first quarter of 2019.  At adoption, Trustmark will recognize a lease asset and a corresponding lease liability on its consolidated balance sheet for its total lease obligation measured on a discounted basis.  As of December 31, 2017, all leases in which Trustmark was the lessee were classified as operating leases and the total outstanding lease obligation was $67.9 million, or 0.5% of total assets.  Management is currently evaluating these lease obligations as potential lease assets and liabilities as defined by ASU 2016-02.  Trustmark does not anticipant any material impact to its consolidated statements of income as a result of the adoption of this ASU.  Trustmark has an immaterial amount of leases in which it is the lessor.  Based on Management’s evaluation to date, Trustmark does not expect the amendments of ASU 2016-02 to have any material impact to these leases or the related income.  Trustmark has obtained a third-party software application which will provide lease contract maintenance and lease accounting under the guidelines of FASB ASC Topic 842.  Management is currently in the process of loading all existing lease contracts into the software application.  Management will continue to evaluate the impact this ASU will have on Trustmark’s consolidated financial statements; however, the adoption of ASU 2016-02 is not expected to have a material impact on Trustmark’s consolidated financial statements.

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Business Combinations (Tables)

9 Months Ended

Sep. 30, 2018

Reliance [Member]

Business Acquisition [Line Items]

Summary of Estimated Fair Values of Assets Purchased and Liabilities Assumed

The statement of assets purchased and liabilities assumed in the Reliance merger is presented below at their estimated fair values as of the merger date of April 7, 2017 ($ in thousands):

Assets:
Cash and due from banks	$	5,013
Federal funds sold and securities purchased under reverse repurchase agreements		6,900
Securities		54,843
Acquired loans		117,447
Premises and equipment, net		3,700
Identifiable intangible assets		1,850
Other real estate		475
Other assets		6,037
Total assets		196,265
Liabilities:
Deposits		166,158
Other borrowings		17,469
Other liabilities		1,322
Total liabilities		184,949
Net identifiable assets acquired at fair value		11,316
Goodwill		13,471
Total consideration paid	$	24,787

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Securities Available for Sale and Held to Maturity (Tables)

9 Months Ended

Sep. 30, 2018

Investments Debt And Equity Securities [Abstract]

Amortized Cost and Estimated Fair Value of Available for Sale and Held to Maturity Securities

The following tables are a summary of the amortized cost and estimated fair value of securities available for sale and held to maturity at September 30, 2018 and December 31, 2017 ($ in thousands):

	Securities Available for Sale									Securities Held to Maturity
September 30, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Government agency obligations	$	33,511	$	126	$	(1,266	)	$	32,371	$	3,725	$	26	$	—		$	3,751
Obligations of states and political    subdivisions		57,127		201		(64	)		57,264		42,623		173		(156	)		42,640
Mortgage-backed securities
Residential mortgage pass-through    securities
Guaranteed by GNMA		68,844		118		(3,115	)		65,847		12,316		33		(389	)		11,960
Issued by FNMA and FHLMC		713,673		125		(29,324	)		684,474		119,040		3		(4,652	)		114,391
Other residential mortgage-backed    securities
Issued or guaranteed by FNMA,    FHLMC or GNMA		872,699		86		(32,712	)		840,073		600,635		—		(27,473	)		573,162
Commercial mortgage-backed securities
Issued or guaranteed by FNMA,    FHLMC or GNMA		189,248		154		(4,798	)		184,604		165,544		41		(4,172	)		161,413
Total	$	1,935,102	$	810	$	(71,279	)	$	1,864,633	$	943,883	$	276	$	(36,842	)	$	907,317
December 31, 2017
U.S. Government agency obligations	$	45,763	$	322	$	(800	)	$	45,285	$	3,692	$	182	$	—		$	3,874
Obligations of states and political    subdivisions		78,433		850		(54	)		79,229		46,039		1,044		(59	)		47,024
Mortgage-backed securities
Residential mortgage pass-through    securities
Guaranteed by GNMA		66,634		215		(1,103	)		65,746		13,539		207		(73	)		13,673
Issued by FNMA and FHLMC		824,872		827		(11,249	)		814,450		133,975		210		(1,559	)		132,626
Other residential mortgage-backed    securities
Issued or guaranteed by FNMA,    FHLMC or GNMA		1,028,176		1,808		(13,194	)		1,016,790		678,926		1,209		(11,065	)		669,070
Commercial mortgage-backed securities
Issued or guaranteed by FNMA,    FHLMC or GNMA		218,252		426		(1,543	)		217,135		180,315		1,102		(1,437	)		179,980
Total	$	2,262,130	$	4,448	$	(27,943	)	$	2,238,635	$	1,056,486	$	3,954	$	(14,193	)	$	1,046,247

Securities with Gross Unrealized Losses, Segregated by Length of Impairment

The tables below include securities with gross unrealized losses segregated by length of impairment at September 30, 2018 and December 31, 2017 ($ in thousands):

	Less than 12 Months					12 Months or More					Total
September 30, 2018	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
U.S. Government agency obligations	$	—	$	—		$	26,421	$	(1,266	)	$	26,421	$	(1,266	)
Obligations of states and political subdivisions		29,786		(179	)		3,791		(41	)		33,577		(220	)
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		24,843		(677	)		49,000		(2,827	)		73,843		(3,504	)
Issued by FNMA and FHLMC		134,720		(3,928	)		655,161		(30,048	)		789,881		(33,976	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or    GNMA		531,793		(14,120	)		865,762		(46,065	)		1,397,555		(60,185	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or    GNMA		168,750		(3,334	)		158,538		(5,636	)		327,288		(8,970	)
Total	$	889,892	$	(22,238	)	$	1,758,673	$	(85,883	)	$	2,648,565	$	(108,121	)
December 31, 2017
U.S. Government agency obligations	$	5,214	$	(113	)	$	29,432	$	(687	)	$	34,646	$	(800	)
Obligations of states and political subdivisions		19,345		(80	)		3,874		(33	)		23,219		(113	)
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		37,304		(351	)		29,446		(825	)		66,750		(1,176	)
Issued by FNMA and FHLMC		506,410		(4,219	)		369,060		(8,589	)		875,470		(12,808	)
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or    GNMA		755,013		(7,668	)		534,955		(16,591	)		1,289,968		(24,259	)
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or    GNMA		230,898		(1,719	)		55,288		(1,261	)		286,186		(2,980	)
Total	$	1,554,184	$	(14,150	)	$	1,022,055	$	(27,986	)	$	2,576,239	$	(42,136	)

Gains and Losses as a Result of Calls and Disposition of Securities

Gross realized gains or losses as a result of calls and dispositions of securities, as well as any associated proceeds, were as follows for the periods presented ($ in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
Available for Sale	2018		2017			2018		2017
Proceeds from calls and sales of securities	$	—	$	1,273		$	—	$	27,682
Gross realized gains		—		15			—		16
Gross realized (losses)		—		(1	)		—		(1	)

Contractual Maturities of Available for Sale and Held to Maturity Securities

The amortized cost and estimated fair value of securities available for sale and held to maturity at September 30, 2018, by contractual maturity, are shown below ($ in thousands).  Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	25,525	$	25,554	$	170	$	170
Due after one year through five years		37,426		37,661		41,912		41,934
Due after five years through ten years		3,124		3,054		4,266		4,287
Due after ten years		24,563		23,366		—		—
		90,638		89,635		46,348		46,391
Mortgage-backed securities		1,844,464		1,774,998		897,535		860,926
Total	$	1,935,102	$	1,864,633	$	943,883	$	907,317

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Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI (Tables)

9 Months Ended

Sep. 30, 2018

Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]

Loan Portfolio Held for Investment

At September 30, 2018 and December 31, 2017, LHFI consisted of the following ($ in thousands):

	September 30, 2018			December 31, 2017
Loans secured by real estate:
Construction, land development and other land	$	1,031,491		$	987,624
Secured by 1-4 family residential properties		1,801,029			1,675,311
Secured by nonfarm, nonresidential properties		2,294,289			2,193,823
Other real estate secured		453,687			517,956
Commercial and industrial loans		1,565,922			1,570,345
Consumer loans		182,709			171,918
State and other political subdivision loans		929,178			952,483
Other loans		488,725			500,507
LHFI		8,747,030			8,569,967
Allowance for loan losses, LHFI		(88,874	)		(76,733	)
Net LHFI	$	8,658,156		$	8,493,234

Aging Analysis of Past Due and Nonaccrual LHFI by Loan Type

The following tables provide an aging analysis of past due and nonaccrual LHFI by loan type at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
	Past Due
	30-59 Days		60-89 Days		90 Days orMore (1)		Total		Nonaccrual		Current Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other    land	$	203	$	5	$	—	$	208	$	2,262	$	1,029,021	$	1,031,491
Secured by 1-4 family residential properties		5,626		1,304		447		7,377		15,164		1,778,488		1,801,029
Secured by nonfarm, nonresidential    properties		256		280		—		536		5,389		2,288,364		2,294,289
Other real estate secured		5		—		—		5		742		452,940		453,687
Commercial and industrial loans		1,727		9		21		1,757		33,870		1,530,295		1,565,922
Consumer loans		1,480		241		258		1,979		228		180,502		182,709
State and other political subdivision loans		—		—		—		—		8,762		920,416		929,178
Other loans		419		33		—		452		1,419		486,854		488,725
Total	$	9,716	$	1,872	$	726	$	12,314	$	67,836	$	8,666,880	$	8,747,030

(1) Past due 90 days or more but still accruing interest.

	December 31, 2017
	Past Due
	30-59 Days		60-89 Days		90 Days orMore (1)		Total		Nonaccrual		Current Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other    land	$	391	$	1	$	—	$	392	$	2,105	$	985,127	$	987,624
Secured by 1-4 family residential properties		6,412		2,084		1,917		10,413		19,022		1,645,876		1,675,311
Secured by nonfarm, nonresidential    properties		2,319		256		—		2,575		12,608		2,178,640		2,193,823
Other real estate secured		—		—		—		—		212		517,744		517,956
Commercial and industrial loans		759		1,233		12		2,004		33,338		1,535,003		1,570,345
Consumer loans		2,141		255		242		2,638		135		169,145		171,918
State and other political subdivision loans		350		39		—		389		—		952,094		952,483
Other loans		18		4		—		22		155		500,330		500,507
Total	$	12,390	$	3,872	$	2,171	$	18,433	$	67,575	$	8,483,959	$	8,569,967

(1) Past due 90 days or more but still accruing interest.

Impaired Financing Receivables

At September 30, 2018 and December 31, 2017, individually evaluated impaired LHFI consisted of the following ($ in thousands):

	September 30, 2018
	LHFI
	Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Total Carrying Amount		Related Allowance		Average Recorded Investment
Loans secured by real estate:
Construction, land development and other land	$	1,801	$	1,546	$	26	$	1,572	$	—	$	1,747
Secured by 1-4 family residential properties		4,771		126		3,614		3,740		43		4,217
Secured by nonfarm, nonresidential properties		3,585		3,010		360		3,370		78		5,845
Other real estate secured		—		—		—		—		—		—
Commercial and industrial loans		39,845		14,657		19,045		33,702		13,869		28,218
Consumer loans		3		—		3		3		—		6
State and other political subdivision loans		8,765		4,079		4,683		8,762		683		4,381
Other loans		1,432		230		1,076		1,306		1,076		816
Total	$	60,202	$	23,648	$	28,807	$	52,455	$	15,749	$	45,230

	December 31, 2017
	LHFI
	Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Total Carrying Amount		Related Allowance		Average Recorded Investment
Loans secured by real estate:
Construction, land development and other land	$	1,704	$	1,206	$	199	$	1,405	$	75	$	1,923
Secured by 1-4 family residential properties		6,031		160		4,576		4,736		1,331		4,693
Secured by nonfarm, nonresidential properties		15,205		10,027		396		10,423		165		8,321
Other real estate secured		—		—		—		—		—		—
Commercial and industrial loans		36,874		31,281		518		31,799		131		22,734
Consumer loans		17		—		17		17		—		9
State and other political subdivision loans		—		—		—		—		—		—
Other loans		556		—		556		556		41		325
Total	$	60,387	$	42,674	$	6,262	$	48,936	$	1,743	$	38,005

Impact of Modifications Classified as Troubled Debt Restructurings

The following tables illustrate the impact of modifications classified as TDRs as well as those TDRs modified within the last 12 months for which there was a payment default during the period for the periods presented ($ in thousands):

	Three Months Ended September 30,
	2018						2017
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Loans secured by 1-4    family residential    properties		3	$	121	$	121		1	$	112	$	113
Loans secured by    nonfarm, nonresidential    properties		—		—		—		1		426		426
Commercial and industrial    loans		9		11,153		10,062		6		12,500		12,500
Total		12	$	11,274	$	10,183		8	$	13,038	$	13,039

	Nine Months Ended September 30,
	2018						2017
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Construction, land    development and other    land loans		1	$	22	$	22		1	$	341	$	325
Loans secured by 1-4    family residential    properties		19		1,873		1,432		17		1,280		1,290
Loans secured by    nonfarm, nonresidential    properties		—		—		—		1		426		426
Commercial and industrial    loans		15		22,899		21,791		7		12,744		12,744
Consumer loans		3		4		4		—		—		—
Total		38	$	24,798	$	23,249		26	$	14,791	$	14,785

Troubled Debt Restructuring Subsequently Defaulted

	Nine Months Ended September 30,
	2018				2017
TDRs that Subsequently Defaulted	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Construction, land development and other land loans		1	$	21		—	$	—
Loans secured by 1-4 family residential properties		6		321		4		64
Commercial and industrial loans		6		13,985		2		—
Total		13	$	14,327		6	$	64

Troubled Debt Restructuring Related to Loans Held for Investment by Loan Type

The following tables detail LHFI classified as TDRs by loan type at September 30, 2018 and 2017 ($ in thousands):

	September 30, 2018
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	26	$	26
Secured by 1-4 family residential properties		563		3,052		3,615
Secured by nonfarm, nonresidential properties		—		360		360
Commercial and industrial loans		1,783		29,636		31,419
Consumer loans		—		3		3
Other loans		—		540		540
Total TDRs	$	2,346	$	33,617	$	35,963

	September 30, 2017
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	272	$	272
Secured by 1-4 family residential properties		14		3,077		3,091
Secured by nonfarm, nonresidential properties		426		436		862
Commercial and industrial loans		—		20,153		20,153
Consumer loans		—		1		1
Total TDRs	$	440	$	23,939	$	24,379

Carrying Amount of Loans by Credit Quality Indicator

The tables below present LHFI by loan type and credit quality indicator at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
		Commercial LHFI
		Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other    land		$	961,316	$	78	$	4,512	$	208	$	966,114
Secured by 1-4 family residential    properties			125,998		175		2,960		60		129,193
Secured by nonfarm, nonresidential    properties			2,259,388		3,052		31,302		484		2,294,226
Other real estate secured			452,095		454		515		—		453,064
Commercial and industrial loans			1,490,431		9,721		63,936		1,834		1,565,922
Consumer loans			—		—		—		—		—
State and other political subdivision loans			913,286		5,250		10,642		—		929,178
Other loans			458,118		15,597		10,469		77		484,261
Total		$	6,660,632	$	34,327	$	124,336	$	2,663	$	6,821,958

	Consumer LHFI
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other    land	$	65,028	$	3	$	—	$	346	$	65,377	$	1,031,491
Secured by 1-4 family residential    properties		1,651,019		6,566		447		13,804		1,671,836		1,801,029
Secured by nonfarm, nonresidential    properties		63		—		—		—		63		2,294,289
Other real estate secured		623		—		—		—		623		453,687
Commercial and industrial loans		—		—		—		—		—		1,565,922
Consumer loans		180,503		1,721		258		227		182,709		182,709
State and other political subdivision loans		—		—		—		—		—		929,178
Other loans		4,464		—		—		—		4,464		488,725
Total	$	1,901,700	$	8,290	$	705	$	14,377	$	1,925,072	$	8,747,030

	December 31, 2017
		Commercial LHFI
		Pass - Categories 1-6		Special Mention - Category 7		Substandard- Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other    land		$	922,563	$	316	$	3,780	$	222	$	926,881
Secured by 1-4 family residential    properties			127,405		134		4,948		76		132,563
Secured by nonfarm, nonresidential    properties			2,135,749		6,684		50,785		527		2,193,745
Other real estate secured			517,036		—		517		—		517,553
Commercial and industrial loans			1,437,590		28,780		103,089		886		1,570,345
Consumer loans			—		—		—		—		—
State and other political subdivision loans			936,420		5,850		10,213		—		952,483
Other loans			478,083		—		16,390		108		494,581
Total		$	6,554,846	$	41,764	$	189,722	$	1,819	$	6,788,151

	Consumer LHFI
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other    land	$	60,240	$	342	$	—	$	161	$	60,743	$	987,624
Secured by 1-4 family residential    properties		1,516,691		7,874		1,809		16,374		1,542,748		1,675,311
Secured by nonfarm, nonresidential    properties		78		—		—		—		78		2,193,823
Other real estate secured		403		—		—		—		403		517,956
Commercial and industrial loans		—		—		—		—		—		1,570,345
Consumer loans		169,146		2,396		242		134		171,918		171,918
State and other political subdivision loans		—		—		—		—		—		952,483
Other loans		5,926		—		—		—		5,926		500,507
Total	$	1,752,484	$	10,612	$	2,051	$	16,669	$	1,781,816	$	8,569,967

Change in Allowance for Loan Losses

The following tables detail the balance in the allowance for loan losses, LHFI allocated to each loan type segmented by the impairment evaluation methodology used at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	8,414	$	8,414
Secured by 1-4 family residential properties		43		9,265		9,308
Secured by nonfarm, nonresidential properties		78		24,781		24,859
Other real estate secured		—		2,949		2,949
Commercial and industrial loans		13,869		19,448		33,317
Consumer loans		—		3,394		3,394
State and other political subdivision loans		683		510		1,193
Other loans		1,076		4,364		5,440
Total allowance for loan losses, LHFI	$	15,749	$	73,125	$	88,874

	December 31, 2017
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	75	$	7,790	$	7,865
Secured by 1-4 family residential properties		1,331		9,543		10,874
Secured by nonfarm, nonresidential properties		165		23,263		23,428
Other real estate secured		—		2,790		2,790
Commercial and industrial loans		131		22,720		22,851
Consumer loans		—		3,470		3,470
State and other political subdivision loans		—		789		789
Other loans		41		4,625		4,666
Total allowance for loan losses, LHFI	$	1,743	$	74,990	$	76,733

Changes in the allowance for loan losses, LHFI were as follows for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Balance at beginning of period	$	83,566		$	76,184		$	76,733		$	71,265
Transfers (1)		772			—			1,554			—
Loans charged-off		(7,017	)		(2,752	)		(12,980	)		(9,072	)
Recoveries		2,880			3,228			7,766			8,784
Net (charge-offs) recoveries		(4,137	)		476			(5,214	)		(288	)
Provision for loan losses, LHFI		8,673			3,672			15,801			9,355
Balance at end of period	$	88,874		$	80,332		$	88,874		$	80,332

(1) The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank & Trust Company (Bay Bank) merger on March 16, 2012, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage Banking Group (Heritage) acquisition on April 15, 2011 and the Reliance merger on April 7, 2017, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.

The following tables detail changes in the allowance for loan losses, LHFI by loan type for the periods ended September 30, 2018 and 2017 ($ in thousands):

	2018
	Balance January 1,		Transfers (1)		Charge-offs			Recoveries		Provision for Loan Losses			Balance September 30,
Loans secured by real estate:
Construction, land development and other land	$	7,865	$	584	$	(123	)	$	1,039	$	(951	)	$	8,414
Secured by 1-4 family residential properties		10,874		182		(1,435	)		439		(752	)		9,308
Secured by nonfarm, nonresidential properties		23,428		446		(1,117	)		120		1,982			24,859
Other real estate secured		2,790		291		—			17		(149	)		2,949
Commercial and industrial loans		22,851		46		(4,658	)		2,285		12,793			33,317
Consumer loans		3,470		5		(1,585	)		1,545		(41	)		3,394
State and other political subdivision loans		789		—		—			—		404			1,193
Other loans		4,666		—		(4,062	)		2,321		2,515			5,440
Total allowance for loan losses, LHFI	$	76,733	$	1,554	$	(12,980	)	$	7,766	$	15,801		$	88,874

(1) The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger on March 16, 2012, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.

	2017
	Balance January 1,		Charge-offs			Recoveries		Provision for Loan Losses			Balance September 30,
Loans secured by real estate:
Construction, land development and other land loans	$	9,085	$	(79	)	$	1,257	$	(1,615	)	$	8,648
Secured by 1-4 family residential properties		10,347		(753	)		1,429		(743	)		10,280
Secured by nonfarm, nonresidential properties		20,967		(50	)		289		7,542			28,748
Other real estate secured		2,263		—			31		1,111			3,405
Commercial and industrial loans		22,011		(2,624	)		1,813		(1,420	)		19,780
Consumer loans		3,241		(1,809	)		1,427		1,597			4,456
State and other political subdivision loans		859		—			—		(48	)		811
Other loans		2,492		(3,757	)		2,538		2,931			4,204
Total allowance for loan losses, LHFI	$	71,265	$	(9,072	)	$	8,784	$	9,355		$	80,332

Summary Of LHFI Evaluated For Impairment

The following tables detail LHFI by loan type related to each balance in the allowance for loan losses, LHFI segregated by the impairment evaluation methodology used at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,572	$	1,029,919	$	1,031,491
Secured by 1-4 family residential properties		3,740		1,797,289		1,801,029
Secured by nonfarm, nonresidential properties		3,370		2,290,919		2,294,289
Other real estate secured		—		453,687		453,687
Commercial and industrial loans		33,702		1,532,220		1,565,922
Consumer loans		3		182,706		182,709
State and other political subdivision loans		8,762		920,416		929,178
Other loans		1,306		487,419		488,725
Total	$	52,455	$	8,694,575	$	8,747,030

	December 31, 2017
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,405	$	986,219	$	987,624
Secured by 1-4 family residential properties		4,736		1,670,575		1,675,311
Secured by nonfarm, nonresidential properties		10,423		2,183,400		2,193,823
Other real estate secured		—		517,956		517,956
Commercial and industrial loans		31,799		1,538,546		1,570,345
Consumer loans		17		171,901		171,918
State and other political subdivision loans		—		952,483		952,483
Other loans		556		499,951		500,507
Total	$	48,936	$	8,521,031	$	8,569,967

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Acquired Loans (Tables)

9 Months Ended

Sep. 30, 2018

Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract]

Schedule of Acquired Loans

At September 30, 2018 and December 31, 2017, acquired loans consisted of the following ($ in thousands):

	September 30, 2018			December 31, 2017
Loans secured by real estate:
Construction, land development and other land	$	6,657		$	23,586
Secured by 1-4 family residential properties		25,274			61,751
Secured by nonfarm, nonresidential properties		66,865			114,694
Other real estate secured		8,507			16,746
Commercial and industrial loans		16,610			31,506
Consumer loans		1,514			2,600
Other loans		7,188			10,634
Acquired loans		132,615			261,517
Allowance for loan losses, acquired loans		(1,714	)		(4,079	)
Net acquired loans	$	130,901		$	257,438

Changes in the Carrying Value of Acquired Loans

The following table presents changes in the net carrying value of the acquired loans for the periods presented ($ in thousands):

	Acquired Impaired			Acquired Not ASC 310-30 (1)
Carrying value, net at January 1, 2017	$	218,107		$	42,743
Transfers (2)		—			(36,719	)
Additions (3)		7,899			109,548
Accretion to interest income		14,924			1,578
Payments received, net		(68,317	)		(39,208	)
Other (4)		(361	)		(74	)
Change in allowance for loan losses, acquired loans		7,318			—
Carrying value, net at December 31, 2017		179,570			77,868
Transfers (5)(2)		(26,497	)		(43,922	)
Accretion to interest income		7,870			782
Payments received, net		(50,940	)		(16,096	)
Other (4)		(173	)		74
Change in allowance for loan losses, acquired loans		2,365			—
Carrying value, net at September 30, 2018	$	112,195		$	18,706

(1) “Acquired Not ASC 310-30” loans consist of loans that are not in scope for FASB ASC Topic 310-30.

(2) “Acquired Not ASC 310-30”loans transferred to LHFI due to the discount on these loans being fully amortized.

(3) Loans acquired in the Reliance merger on April 7, 2017.

(4) Includes miscellaneous timing adjustments as well as acquired loan terminations through foreclosure, charge-off and other terminations.

(5) During the second quarter of 2018, Trustmark transferred the remaining loans acquired in the Bay Bank merger on March 16, 2012 from acquired impaired loans to LHFI.  During the third quarter of 2018, Trustmark transferred the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017 from acquired impaired loans to LHFI.

Changes in Accretable Yield of Acquired Loans

The following table presents changes in the accretable yield for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2018			2017
Accretable yield at beginning of period	$	(31,426	)	$	(38,918	)
Accretion to interest income		7,870			11,021
Additions due to acquisitions (1)		—			(784	)
Disposals, net		3,452			1,759
Transfers (2)		5,874			—
Reclassification from nonaccretable difference (3)		(4,204	)		(7,204	)
Accretable yield at end of period	$	(18,434	)	$	(34,126	)

(1) Accretable yield on loans acquired from Reliance on April 7, 2017.

(2) During the second quarter of 2018, Trustmark transferred the remaining loans acquired in the Bay Bank merger on March 16, 2012 from acquired impaired loans to LHFI.  During the third quarter of 2018, Trustmark transferred the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017 from acquired impaired loans to LHFI.

(3) Reclassifications from nonaccretable difference are due to lower loss expectations and improvements in expected cash flows.

Components of the Allowance for Loan Losses on Acquired Loans

The following tables present the components of the allowance for loan losses on acquired loans for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Balance at beginning of period	$	3,046		$	7,423		$	4,079		$	11,397
Transfers (1)		(772	)		—			(1,554	)		—
Net (charge-offs) recoveries		(93	)		(2	)		(53	)		193
Provision for loan losses, acquired loans		(467	)		(1,653	)		(758	)		(5,822	)
Balance at end of period	$	1,714		$	5,768		$	1,714		$	5,768

(1) The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage acquisition and the Reliance merger, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.

Acquired Loans by Loan Type and Credit Quality Indicator

The tables below present the acquired loans by loan type and credit quality indicator at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
			Commercial Loans
			Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development    and other land			$	5,541	$	25	$	296	$	68	$	5,930
Secured by 1-4 family    residential properties				5,594		47		645		—		6,286
Secured by nonfarm,    nonresidential properties				51,123		—		15,223		519		66,865
Other real estate secured				7,906		—		177		424		8,507
Commercial and industrial loans				7,366		—		6,832		2,412		16,610
Consumer loans				—		—		—		—		—
Other loans				4,536		—		2,652		—		7,188
Total acquired loans			$	82,066	$	72	$	25,825	$	3,423	$	111,386
	Consumer Loans
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual (1)		Subtotal		Total Acquired Loans
Loans secured by real estate:
Construction, land development    and other land	$	652	$	75	$	—	$	—	$	727	$	6,657
Secured by 1-4 family    residential properties		17,676		1,044		268		—		18,988		25,274
Secured by nonfarm,    nonresidential properties		—		—		—		—		—		66,865
Other real estate secured		—		—		—		—		—		8,507
Commercial and industrial loans		—		—		—		—		—		16,610
Consumer loans		1,473		41		—		—		1,514		1,514
Other loans		—		—		—		—		—		7,188
Total acquired loans	$	19,801	$	1,160	$	268	$	—	$	21,229	$	132,615

(1) Acquired loans not accounted for under FASB ASC Topic 310-30.

	December 31, 2017
			Commercial Loans
			Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development    and other land			$	17,150	$	234	$	4,690	$	264	$	22,338
Secured by 1-4 family    residential properties				14,021		298		3,029		—		17,348
Secured by nonfarm,    nonresidential properties				95,147		1,400		17,583		530		114,660
Other real estate secured				12,730		102		3,031		477		16,340
Commercial and industrial loans				22,157		15		7,585		1,749		31,506
Consumer loans				—		—		—		—		—
Other loans				5,874		18		4,742		—		10,634
Total acquired loans			$	167,079	$	2,067	$	40,660	$	3,020	$	212,826
	Consumer Loans
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual (1)		Subtotal		Total Acquired Loans
Loans secured by real estate:
Construction, land development    and other land	$	1,188	$	46	$	14	$	—	$	1,248	$	23,586
Secured by 1-4 family    residential properties		42,008		1,687		584		124		44,403		61,751
Secured by nonfarm,    nonresidential properties		34		—		—		—		34		114,694
Other real estate secured		406		—		—		—		406		16,746
Commercial and industrial loans		—		—		—		—		—		31,506
Consumer loans		2,428		172		—		—		2,600		2,600
Other loans		—		—		—		—		—		10,634
Total acquired loans	$	46,064	$	1,905	$	598	$	124	$	48,691	$	261,517

(1) Acquired loans not accounted for under FASB ASC Topic 310-30.

Aging Analysis of Past Due and Nonaccrual Acquired Loans, by Class

The following tables provide an aging analysis of contractually past due and nonaccrual acquired loans by loan type at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018
	Past Due
	30-59 Days		60-89 Days		90 Days or More (1)		Total		Nonaccrual (2)		Current Loans		Total Acquired Loans
Loans secured by real estate:
Construction, land development    and other land	$	103	$	—	$	25	$	128	$	—	$	6,529	$	6,657
Secured by 1-4 family residential    properties		703		341		288		1,332		—		23,942		25,274
Secured by nonfarm, nonresidential    properties		297		—		1,475		1,772		—		65,093		66,865
Other real estate secured		15		—		—		15		—		8,492		8,507
Commercial and industrial loans		—		—		607		607		—		16,003		16,610
Consumer loans		39		2		—		41		—		1,473		1,514
Other loans		—		—		—		—		—		7,188		7,188
Total acquired loans	$	1,157	$	343	$	2,395	$	3,895	$	—	$	128,720	$	132,615

(1) Past due 90 days or more but still accruing interest.

(2) Acquired loans not accounted for under FASB ASC Topic 310-30.

	December 31, 2017
	Past Due
	30-59 Days		60-89 Days		90 Days or More (1)		Total		Nonaccrual (2)		Current Loans		Total Acquired Loans
Loans secured by real estate:
Construction, land development and    other land	$	34	$	90	$	861	$	985	$	—	$	22,601	$	23,586
Secured by 1-4 family residential    properties		1,691		614		654		2,959		302		58,490		61,751
Secured by nonfarm, nonresidential    properties		467		73		898		1,438		—		113,256		114,694
Other real estate secured		132		—		—		132		—		16,614		16,746
Commercial and industrial loans		—		—		—		—		2		31,504		31,506
Consumer loans		16		156		—		172		—		2,428		2,600
Other loans		—		—		21		21		—		10,613		10,634
Total acquired loans	$	2,340	$	933	$	2,434	$	5,707	$	304	$	255,506	$	261,517

(1) Past due 90 days or more but still accruing interest.

(2) Acquired loans not accounted for under FASB ASC Topic 310-30.

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Mortgage Banking (Tables)

9 Months Ended

Sep. 30, 2018

Mortgage Banking [Abstract]

Schedule of Activity in the Mortgage Servicing Rights

The activity in the mortgage servicing rights (MSR) is detailed in the table below for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2018			2017
Balance at beginning of period	$	84,269		$	80,239
Origination of servicing assets		12,248			11,630
Change in fair value:
Due to market changes		13,879			(2,218	)
Due to run-off		(9,022	)		(8,174	)
Balance at end of period	$	101,374		$	81,477

Schedule of Mortgage Loans Sold and Serviced for Others

The table below details the mortgage loans sold and serviced for others at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018		December 31, 2017
Federal National Mortgage Association	$	4,174,961	$	4,128,614
Government National Mortgage Association		2,492,009		2,421,456
Federal Home Loan Mortgage Corporation		69,617		47,071
Other		22,804		26,864
Total mortgage loans sold and serviced for others	$	6,759,391	$	6,624,005

Changes In The Reserve For Mortgage Loan Servicing Putback Expense

Changes in the reserve for mortgage loan servicing putback expense for mortgage loans were as follows for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2018		2017
Balance at beginning of period	$	1,000	$	1,130
Provision for putback expenses		—		164
Other (1)		—		706
Balance at end of period	$	1,000	$	2,000

(1) Includes fair value adjustments for loans transferred due to underwriting issues as well as adjustments based on Trustmark’s mortgage loan servicing putback reserve analysis.    

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Other Real Estate (Tables)

9 Months Ended

Sep. 30, 2018

Other Real Estate And Foreclosed Assets [Abstract]

Changes and Gains (Losses), Net on Other Real Estate

For the periods presented, changes and gains (losses), net on other real estate were as follows ($ in thousands):

	Nine Months Ended September 30,
	2018			2017
Balance at beginning of period	$	43,228		$	62,051
Additions (1)		10,368			7,481
Disposals		(15,264	)		(18,583	)
Write-downs		(1,857	)		(2,593	)
Balance at end of period	$	36,475		$	48,356
Gains (losses), net on the sale of other real estate included in    other real estate expense	$	1,226		$	1,722

(1) Includes $475 thousand of other real estate acquired in the Reliance merger on April 7, 2017.

Other Real Estate, By Type of Property

At September 30, 2018 and December 31, 2017, other real estate by type of property consisted of the following ($ in thousands):

	September 30, 2018		December 31, 2017
Construction, land development and other land properties	$	18,976	$	27,491
1-4 family residential properties		5,266		5,081
Nonfarm, nonresidential properties		12,050		10,468
Other real estate properties		183		188
Total other real estate	$	36,475	$	43,228

Other Real Estate, By Geographic Location

At September 30, 2018 and December 31, 2017, other real estate by geographic location consisted of the following ($ in thousands):

	September 30, 2018		December 31, 2017
Alabama	$	7,526	$	11,714
Florida		8,931		13,937
Mississippi (1)		18,191		14,260
Tennessee (2)		1,083		2,535
Texas		744		782
Total other real estate	$	36,475	$	43,228

(1) Mississippi includes Central and Southern Mississippi Regions

(2) Tennessee includes Memphis, Tennessee and Northern Mississippi Regions

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Deposits (Tables)

9 Months Ended

Sep. 30, 2018

Deposits [Abstract]

Deposits Summary

At September 30, 2018 and December 31, 2017, deposits consisted of the following ($ in thousands):

	September 30, 2018		December 31, 2017
Noninterest-bearing demand	$	2,786,539	$	2,978,074
Interest-bearing demand		2,739,245		2,432,814
Savings		3,538,125		3,408,183
Time		1,893,001		1,758,441
Total	$	10,956,910	$	10,577,512

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Securities Sold Under Repurchase Agreements (Tables)

9 Months Ended

Sep. 30, 2018

Securities Sold Under Agreements To Repurchase [Abstract]

Schedule of Securities Sold Under Repurchase Agreements

The following table presents the securities sold under repurchase agreements by collateral pledged at September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018		December 31, 2017
Mortgage-backed securities
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA	$	41,650	$	68,246
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC or GNMA		48,861		50,448
Total securities sold under repurchase agreements	$	90,511	$	118,694

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Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2018

Revenue From Contract With Customer [Abstract]

Summary of Noninterest Income Disaggregated by Reportable Operating Segment and Revenue Stream

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, 2018							Three Months Ended September 30, 2017 (1)
	Topic 606		Not Topic 606 (2)			Total		Topic 606		Not Topic 606 (2)		Total
General Banking Division
Service charges on deposit accounts	$	11,074	$	—		$	11,074	$	11,222	$	—	$	11,222
Bank card and other fees		6,503		937			7,440		7,104		23		7,127
Mortgage banking, net		—		8,647			8,647		—		4,425		4,425
Wealth management		70		—			70		64		—		64
Other, net		1,685		(359	)		1,326		1,495		2,223		3,718
Security gains (losses), net		—		—			—		—		14		14
Total noninterest income	$	19,332	$	9,225		$	28,557	$	19,885	$	6,685	$	26,570
Wealth Management Division
Service charges on deposit accounts	$	1	$	—		$	1	$	1	$	—	$	1
Bank card and other fees		19		—			19		23		—		23
Wealth management		7,719		—			7,719		7,466		—		7,466
Other, net		1		29			30		—		22		22
Total noninterest income	$	7,740	$	29		$	7,769	$	7,490	$	22	$	7,512
Insurance Division
Insurance commissions	$	10,765	$	—		$	10,765	$	10,398	$	—	$	10,398
Other, net		2		—			2		—		—		—
Total noninterest income	$	10,767	$	—		$	10,767	$	10,398	$	—	$	10,398
Consolidated
Service charges on deposit accounts	$	11,075	$	—		$	11,075	$	11,223	$	—	$	11,223
Bank card and other fees		6,522		937			7,459		7,127		23		7,150
Mortgage banking, net		—		8,647			8,647		—		4,425		4,425
Insurance commissions		10,765		—			10,765		10,398		—		10,398
Wealth management		7,789		—			7,789		7,530		—		7,530
Other, net		1,688		(330	)		1,358		1,495		2,245		3,740
Security gains (losses), net		—		—			—		—		14		14
Total noninterest income	$	37,839	$	9,254		$	47,093	$	37,773	$	6,707	$	44,480

(1) Trustmark elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and maynot be comparable to current year presentation.

(2) 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 securitygains (losses), net.

	Nine Months Ended September 30, 2018						Nine Months Ended September 30, 2017 (1)
	Topic 606		Not Topic 606 (2)		Total		Topic 606		Not Topic 606 (2)		Total
General Banking Division
Service charges on deposit accounts	$	32,577	$	—	$	32,577	$	32,809	$	—	$	32,809
Bank card and other fees		19,865		1,227		21,092		20,777		208		20,985
Mortgage banking, net		—		28,958		28,958		—		23,618		23,618
Wealth management		210		—		210		210		—		210
Other, net		4,666		84		4,750		4,997		6,196		11,193
Security gains (losses), net		—		—		—		—		15		15
Total noninterest income	$	57,318	$	30,269	$	87,587	$	58,793	$	30,037	$	88,830
Wealth Management Division
Service charges on deposit accounts	$	2	$	—	$	2	$	1	$	—	$	1
Bank card and other fees		63		—		63		35		—		35
Wealth management		22,624		—		22,624		22,407		—		22,407
Other, net		3		76		79		—		70		70
Total noninterest income	$	22,692	$	76	$	22,768	$	22,443	$	70	$	22,513
Insurance Division
Insurance commissions	$	30,919	$	—	$	30,919	$	29,355	$	—	$	29,355
Other, net		3		—		3		5		—		5
Total noninterest income	$	30,922	$	—	$	30,922	$	29,360	$	—	$	29,360
Consolidated
Service charges on deposit accounts	$	32,579	$	—	$	32,579	$	32,810	$	—	$	32,810
Bank card and other fees		19,928		1,227		21,155		20,812		208		21,020
Mortgage banking, net		—		28,958		28,958		—		23,618		23,618
Insurance commissions		30,919		—		30,919		29,355		—		29,355
Wealth management		22,834		—		22,834		22,617		—		22,617
Other, net		4,672		160		4,832		5,002		6,266		11,268
Security gains (losses), net		—		—		—		—		15		15
Total noninterest income	$	110,932	$	30,345	$	141,277	$	110,596	$	30,107	$	140,703

(1) Trustmark elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and maynot be comparable to current year presentation.

(2) 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 securitygains (losses), net.

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Defined Benefit and Other Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2018

Trustmark Capital Accumulation Plan [Member]

Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]

Net Periodic Benefit Cost for Plan and Continuing Plan

The following table presents information regarding the net periodic benefit cost for the Plan and the Continuing Plan for the periods presented ($ in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Service cost	$	69		$	64		$	208		$	190
Interest cost		83			102			249			1,394
Expected return on plan assets		(57	)		(51	)		(171	)		(267	)
Recognized net loss due to lump sum settlements		41			—			121			—
Recognized net loss due to defined benefit plan termination		—			—			—			17,644
Recognized net actuarial loss		143			142			428			1,272
Net periodic benefit cost	$	279		$	257		$	835		$	20,233

Supplemental Retirement Plan [Member]

Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]

Net Periodic Benefit Cost for Plan and Continuing Plan

The following table presents information regarding the net periodic benefit cost for Trustmark’s nonqualified supplemental retirement plans for the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Service cost	$	29	$	36	$	87	$	106
Interest cost		457		514		1,409		1,589
Amortization of prior service cost		63		63		188		188
Recognized net actuarial loss		218		214		664		651
Net periodic benefit cost	$	767	$	827	$	2,348	$	2,534

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Stock and Incentive Compensation Plans (Tables)

9 Months Ended

Sep. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Stock Plan Activity

The following tables summarize the Stock Plan activity for the periods presented:

	Three Months Ended September 30, 2018
	Performance Awards		Time-Vested Awards
Nonvested shares, beginning of period		177,695		322,528
Granted		—		1,500
Released from restriction		—		(400	)
Forfeited		—		(764	)
Nonvested shares, end of period		177,695		322,864

	Nine Months Ended September 30, 2018
	Performance Awards			Time-Vested Awards
Nonvested shares, beginning of period		213,516			320,357
Granted		51,174			118,325
Released from restriction		(55,351	)		(107,180	)
Forfeited		(31,644	)		(8,638	)
Nonvested shares, end of period		177,695			322,864

Compensation Expense for Awards Under Stock Plan

The following table presents information regarding compensation expense for awards under the Stock Plan for the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Performance awards	$	435	$	435	$	725	$	959
Time-vested awards		723		641		2,297		2,291
Total compensation expense	$	1,158	$	1,076	$	3,022	$	3,250

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Earnings Per Share (EPS) (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Weighted-Average Shares Used to Calculate Basic and Diluted EPS

The following table reflects weighted-average shares used to calculate basic and diluted EPS for the periods presented (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Basic shares		67,621		67,742		67,729		67,722
Dilutive shares		175		174		147		154
Diluted shares		67,796		67,916		67,876		67,876

Weighted-Average Antidilutive Stock Awards Excluded from Determining Diluted EPS

Weighted-average antidilutive stock awards were excluded in determining diluted EPS. The following table reflects weighted-average antidilutive stock awards for the periods presented (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Weighted-average antidilutive stock awards		8		6		87		72

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Statements of Cash Flows (Tables)

9 Months Ended

Sep. 30, 2018

Supplemental Cash Flow Information [Abstract]

Cash Flows Supplementary Disclosures

The following table reflects specific transaction amounts for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2018		2017
Income taxes paid	$	11,629	$	1,423
Interest expense paid on deposits and borrowings		46,506		28,266
Noncash transfers from loans to other real estate		10,368		7,006
Transfer of long-term FHLB advances to short-term		—		250,038
Assets acquired in business combination		—		196,265
Liabilities acquired in business combination		—		184,949

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Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2018

Stockholders Equity Note [Abstract]

Table of Actual Regulatory Capital Amounts and Ratios

The following table provides Trustmark’s and TNB’s actual regulatory capital amounts and ratios under regulatory capital standards in effect at September 30, 2018 and December 31, 2017 ($ in thousands):

	Actual
	Regulatory Capital					Minimum			To Be Well
	Amount		Ratio			Requirement			Capitalized
At September 30, 2018:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,302,859		12.20	%		6.375	%	n/a
Trustmark National Bank		1,344,029		12.59	%		6.375	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,362,859		12.76	%		7.875	%	n/a
Trustmark National Bank		1,344,029		12.59	%		7.875	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,453,447		13.61	%		9.875	%	n/a
Trustmark National Bank		1,434,617		13.44	%		9.875	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,362,859		10.41	%		4.00	%	n/a
Trustmark National Bank		1,344,029		10.29	%		4.00	%		5.00	%
At December 31, 2017:
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,243,240		11.77	%		5.750	%	n/a
Trustmark National Bank		1,284,575		12.16	%		5.750	%		6.50	%
Tier 1 Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,303,238		12.33	%		7.250	%	n/a
Trustmark National Bank		1,284,575		12.16	%		7.250	%		8.00	%
Total Capital (to Risk Weighted Assets)
Trustmark Corporation	$	1,384,050		13.10	%		9.250	%	n/a
Trustmark National Bank		1,365,387		12.93	%		9.250	%		10.00	%
Tier 1 Leverage (to Average Assets)
Trustmark Corporation	$	1,303,238		9.67	%		4.00	%	n/a
Trustmark National Bank		1,284,575		9.54	%		4.00	%		5.00	%

Net Change in Components of Accumulated Other Comprehensive Income (Loss) and the Related Tax Effects

	Three Months Ended September 30, 2018									Three Months Ended September 30, 2017
	Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount			Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred securities:
Net unrealized holding gains (losses) arising    during the period	$	(9,660	)	$	2,414		$	(7,246	)	$	(535	)	$	204		$	(331	)
Reclassification adjustment for net (gains) losses    realized in net income		—			—			—			(14	)		6			(8	)
Change in net unrealized holding loss on    securities transferred to held to maturity		973			(243	)		730			1,130			(432	)		698
Total securities available for sale    and transferred securities		(8,687	)		2,171			(6,516	)		581			(222	)		359
Pension and other postretirement benefit plans:
Net change in prior service costs		63			(16	)		47			63			(24	)		39
Recognized net loss due to lump sum settlements		41			(10	)		31			—			—			—
Change in net actuarial loss		361			(90	)		271			356			(137	)		219
Total pension and other postretirement benefit    plans		465			(116	)		349			419			(161	)		258
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective    cash flow hedge derivatives		52			(13	)		39			53			(20	)		33
Reclassification adjustment for (gain) loss realized    in net income		(104	)		25			(79	)		55			(21	)		34
Total cash flow hedge derivatives		(52	)		12			(40	)		108			(41	)		67
Total other comprehensive income (loss)	$	(8,274	)	$	2,067		$	(6,207	)	$	1,108		$	(424	)	$	684

	Nine Months Ended September 30, 2018									Nine Months Ended September 30, 2017
	Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount			Before Tax Amount			Tax (Expense) Benefit			Net of Tax Amount
Securities available for sale and transferred securities:
Net unrealized holding gains (losses) arising    during the period	$	(46,974	)	$	11,743		$	(35,231	)	$	6,335		$	(2,423	)	$	3,912
Reclassification adjustment for net (gains) losses    realized in net income		—			—			—			(15	)		6			(9	)
Change in net unrealized holding loss on    securities transferred to held to maturity		2,909			(727	)		2,182			3,551			(1,358	)		2,193
Total securities available for sale    and transferred securities		(44,065	)		11,016			(33,049	)		9,871			(3,775	)		6,096
Pension and other postretirement benefit plans:
Net change in prior service costs		188			(48	)		140			188			(72	)		116
Recognized net loss due to lump sum settlements		121			(29	)		92			—			—			—
Change in net actuarial loss		1,092			(273	)		819			1,923			(736	)		1,187
Recognized net loss due to defined benefit plan    termination		—			—			—			16,991			(6,499	)		10,492
Total pension and other postretirement benefit    plans		1,401			(350	)		1,051			19,102			(7,307	)		11,795
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective    cash flow hedge derivatives		611			(153	)		458			(99	)		38			(61	)
Reclassification adjustment for (gain) loss realized    in net income		(209	)		52			(157	)		232			(89	)		143
Total cash flow hedge derivatives		402			(101	)		301			133			(51	)		82
Total other comprehensive income (loss)	$	(42,262	)	$	10,565		$	(31,697	)	$	29,106		$	(11,133	)	$	17,973

Components of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in the balances of each component of accumulated other comprehensive loss for the periods presented ($ in thousands).  All amounts are presented net of tax.

	Securities Availablefor Sale and Transferred Securities			Defined Benefit Pension Items			Cash Flow Hedge Derivatives			Total
Balance at January 1, 2018	$	(26,535	)	$	(13,468	)	$	278		$	(39,725	)
Other comprehensive income (loss) before reclassification		(33,049	)		—			458			(32,591	)
Amounts reclassified from accumulated other    comprehensive loss		—			1,051			(157	)		894
Net other comprehensive income (loss)		(33,049	)		1,051			301			(31,697	)
Reclassification of certain income tax effects related to the change    in the federal statutory income tax rate under the Tax Cuts and    Jobs Act of 2017 (Tax Reform Act)		(5,694	)		(2,890	)		60			(8,524	)
Balance at September 30, 2018	$	(65,278	)	$	(15,307	)	$	639		$	(79,946	)
Balance at January 1, 2017	$	(20,800	)	$	(24,980	)	$	(18	)	$	(45,798	)
Other comprehensive income (loss) before reclassification		6,105			—			(61	)		6,044
Amounts reclassified from accumulated other    comprehensive loss		(9	)		11,795			143			11,929
Net other comprehensive income (loss)		6,096			11,795			82			17,973
Balance at September 30, 2017	$	(14,704	)	$	(13,185	)	$	64		$	(27,825	)

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value Recurring Basis

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value ($ in thousands).  There were no transfers between fair value levels for the nine months ended September 30, 2018 and the year ended December 31, 2017.

	September 30, 2018
	Total		Level 1			Level 2		Level 3
U.S. Government agency obligations	$	32,371	$	—		$	32,371	$	—
Obligations of states and political subdivisions		57,264		—			57,264		—
Mortgage-backed securities		1,774,998		—			1,774,998		—
Securities available for sale		1,864,633		—			1,864,633		—
Loans held for sale		182,664		—			182,664		—
Mortgage servicing rights		101,374		—			—		101,374
Other assets - derivatives		3,287		(1,531	)		3,925		893
Other liabilities - derivatives		4,311		1,070			3,241		—

	December 31, 2017
	Total		Level 1			Level 2		Level 3
U.S. Government agency obligations	$	45,285	$	—		$	45,285	$	—
Obligations of states and political subdivisions		79,229		—			79,229		—
Mortgage-backed securities		2,114,121		—			2,114,121		—
Securities available for sale		2,238,635		—			2,238,635		—
Loans held for sale		180,512		—			180,512		—
Mortgage servicing rights		84,269		—			—		84,269
Other assets - derivatives		1,516		(1,013	)		1,629		900
Other liabilities - derivatives		2,678		616			2,062		—

Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis for the nine months ended September 30, 2018 and 2017 are summarized as follows ($ in thousands):

	MSR			Other Assets - Derivatives
Balance, January 1, 2018	$	84,269		$	900
Total net (loss) gain included in Mortgage banking, net (1)		4,857			3,345
Additions		12,248			—
Sales		—			(3,352	)
Balance, September 30, 2018	$	101,374		$	893
The amount of total gains (losses) for the period included in earnings    that are attributable to the change in unrealized gains or    losses still held at September 30, 2018	$	13,879		$	247
Balance, January 1, 2017	$	80,239		$	1,001
Total net (loss) gain included in Mortgage banking, net (1)		(10,392	)		3,436
Additions		11,630			—
Sales		—			(3,431	)
Balance, September 30, 2017	$	81,477		$	1,006
The amount of total gains (losses) for the period included in    earnings that are attributable to the change in unrealized    gains or losses still held at September 30, 2017	$	(2,218	)	$	(1,483	)

(1) Total net (loss) gain included in Mortgage banking, net relating to the MSR includes changes in fair value due to market changes and due to run-off.

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at September 30, 2018 and December 31, 2017, are as follows ($ in thousands):

	September 30, 2018				December 31, 2017
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Level 2 Inputs:
Cash and short-term investments	$	433,471	$	433,471	$	336,383	$	336,383
Securities held to maturity		943,883		907,317		1,056,486		1,046,247
Level 3 Inputs:
Net LHFI		8,658,156		8,560,091		8,493,234		8,507,469
Net acquired loans		130,901		130,901		257,438		257,438
Financial Liabilities:
Level 2 Inputs:
Deposits		10,956,910		10,953,348		10,577,512		10,577,858
Short-term liabilities		676,888		676,888		1,440,876		1,440,876
Long-term FHLB advances		896		831		946		946
Junior subordinated debt securities		61,856		53,815		61,856		45,773

Fair Value and the Contractual Principal Outstanding of the LHFS

The following table provides information about the fair value and the contractual principal outstanding of the LHFS accounted for under the fair value option as of September 30, 2018 and December 31, 2017 ($ in thousands):

	September 30, 2018		December 31, 2017
Fair value of LHFS	$	134,874	$	132,300
LHFS contractual principal outstanding		134,598		129,347
Fair value less unpaid principal	$	276	$	2,953

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments

The following tables disclose the fair value of derivative instruments in Trustmark’s consolidated balance sheets as of September 30, 2018 and December 31, 2017 as well as the effect of these derivative instruments on Trustmark’s results of operations for the periods presented ($ in thousands):

	September 30, 2018			December 31, 2017
Derivatives in hedging relationships
Interest rate contracts:
Interest rate swaps included in other assets	$	852		$	451
Derivatives not designated as hedging instruments
Interest rate contracts:
Futures contracts included in other assets	$	(1,569	)	$	(1,088	)
Exchange traded purchased options included in other assets		38			75
OTC written options (rate locks) included in other assets		893			900
Interest rate swaps included in other assets		3,073			1,175
Credit risk participation agreements included in other assets		—			3
Forward contracts included in other liabilities		(930	)		237
Exchange traded written options included in other liabilities		1,070			616
Interest rate swaps included in other liabilities		4,170			1,819
Credit risk participation agreements included in other liabilities		1			6

Effects of Derivative Instruments on Statements of Operations

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Derivatives in hedging relationships
Amount of gain (loss) reclassified from accumulated other    comprehensive loss and recognized in other interest expense	$	104		$	(55	)	$	209		$	(232	)
Derivatives not designated as hedging instruments
Amount of gain (loss) recognized in mortgage banking, net	$	(1,302	)	$	(466	)	$	(9,243	)	$	688
Amount of gain (loss) recognized in bank card and other fees		(86	)		(10	)		(41	)		(63	)

Schedule of Amount Included in Other Comprehensive Income for Derivative Instruments Designated as Hedges of Cash Flows

The following table discloses the amount included in other comprehensive income (loss), net of tax, for derivative instruments designated as cash flow hedges for the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Derivatives in cash flow hedging relationship
Amount of gain (loss) recognized in other comprehensive    income (loss), net of tax	$	39	$	33	$	458	$	(61	)

Information about Financial Instruments that are Eligible for Offset in the Consolidated Balance Sheets

Information about financial instruments that are eligible for offset in the consolidated balance sheets as of September 30, 2018 and December 31, 2017 is presented in the following tables ($ in thousands):

Offsetting of Derivative Assets
As of September 30, 2018
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Received			Net Amount
Derivatives	$	3,925	$	—	$	3,925	$	(84	)	$	(950	)	$	2,891

Offsetting of Derivative Liabilities
As of September 30, 2018
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Posted		Net Amount
Derivatives	$	4,170	$	—	$	4,170	$	(84	)	$	—	$	4,086

Offsetting of Derivative Assets
As of December 31, 2017
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Received		Net Amount
Derivatives	$	1,626	$	—	$	1,626	$	(311	)	$	—	$	1,315

Offsetting of Derivative Liabilities
As of December 31, 2017
							Gross Amounts Not Offset in the Statement of Financial Position
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Posted			Net Amount
Derivatives	$	1,819	$	—	$	1,819	$	(311	)	$	(100	)	$	1,408

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Schedule of Segment Information

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,
	2018		2017		2018		2017
General Banking
Net interest income	$	106,784	$	103,408	$	313,299	$	302,613
Provision for loan losses, net		8,206		2,019		15,043		3,533
Noninterest income		28,557		26,570		87,587		88,830
Noninterest expense		89,889		88,814		267,462		284,420
Income before income taxes		37,246		39,145		118,381		103,490
Income taxes		3,536		7,130		13,430		19,772
General banking net income	$	33,710	$	32,015	$	104,951	$	83,718
Selected Financial Information
Total assets	$	13,364,636	$	13,811,335	$	13,364,636	$	13,811,335
Depreciation and amortization	$	9,759	$	9,863	$	28,959	$	28,196
Wealth Management
Net interest income	$	134	$	434	$	771	$	718
Noninterest income		7,769		7,512		22,768		22,513
Noninterest expense		7,194		6,791		19,996		20,361
Income before income taxes		709		1,155		3,543		2,870
Income taxes		177		441		886		1,098
Wealth management net income	$	532	$	714	$	2,657	$	1,772
Selected Financial Information
Total assets	$	9,411	$	6,635	$	9,411	$	6,635
Depreciation and amortization	$	64	$	30	$	116	$	104
Insurance
Net interest income	$	65	$	70	$	170	$	175
Noninterest income		10,767		10,398		30,922		29,360
Noninterest expense		8,140		7,481		24,030		22,437
Income before income taxes		2,692		2,987		7,062		7,098
Income taxes		681		1,137		1,774		2,726
Insurance net income	$	2,011	$	1,850	$	5,288	$	4,372
Selected Financial Information
Total assets	$	65,765	$	66,685	$	65,765	$	66,685
Depreciation and amortization	$	155	$	159	$	437	$	481
Consolidated
Net interest income	$	106,983	$	103,912	$	314,240	$	303,506
Provision for loan losses, net		8,206		2,019		15,043		3,533
Noninterest income		47,093		44,480		141,277		140,703
Noninterest expense		105,223		103,086		311,488		327,218
Income before income taxes		40,647		43,287		128,986		113,458
Income taxes		4,394		8,708		16,090		23,596
Consolidated net income	$	36,253	$	34,579	$	112,896	$	89,862
Selected Financial Information
Total assets	$	13,439,812	$	13,884,655	$	13,439,812	$	13,884,655
Depreciation and amortization	$	9,978	$	10,052	$	29,512	$	28,781

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Business, Basis of Financial Statement Presentation and Principles of Consolidation (Details) $ in Millions	Oct. 10, 2018 USD ($) Loan County	Sep. 30, 2018 Office
Loans And Leases Receivable Disclosure [Line Items]
Number of offices | Office		198
Subsequent Events [Member]
Loans And Leases Receivable Disclosure [Line Items]
Number of loans held by Trustmark | Loan	1,787
Balance of outstanding loans | $	$ 239.7
Credit exposure of loans in FEMA designated disaster areas | $	$ 282.1
Florida [Member] | Subsequent Events [Member]
Loans And Leases Receivable Disclosure [Line Items]
Number of designated disaster area | County	12
Georgia [Member] | Subsequent Events [Member]
Loans And Leases Receivable Disclosure [Line Items]
Number of designated disaster area | County	20

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Business Combinations - Additional Information (Details) $ / shares in Units, $ in Thousands		3 Months Ended
	Apr. 07, 2017 USD ($) Office	Jun. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)	Nov. 14, 2016 $ / shares
Business Acquisition [Line Items]
Goodwill			$ 379,627	$ 379,627
Reliance [Member]
Business Acquisition [Line Items]
Number of offices | Office	7
Business acquisition agreement date	Nov. 14, 2016
Business acquisition, share price | $ / shares					$ 22.00
Total consideration paid	$ 24,800
Goodwill	$ 13,471
Intangible asset estimated useful life	10 years
Reliance [Member] | Other Noninterest Expense [Member]
Business Acquisition [Line Items]
Merger transaction expense		$ 3,200
Reliance [Member] | Other Noninterest Expense [Member] | Change In Control Expense [Member]
Business Acquisition [Line Items]
Merger transaction expense		1,300
Reliance [Member] | Other Noninterest Expense [Member] | Professional Fees and Contract Termination and Other Expenses [Member]
Business Acquisition [Line Items]
Merger transaction expense		$ 1,900
Reliance [Member] | Reliance Common Stock [Member]
Business Acquisition [Line Items]
Business acquisition, payment for equity	$ 23,700
Reliance [Member] | Reliance Preferred Stock [Member]
Business Acquisition [Line Items]
Business acquisition, payment for equity	$ 1,100

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Business Combinations - Summary of Estimated Fair Values of Assets Purchased and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Apr. 07, 2017
Liabilities:
Goodwill	$ 379,627	$ 379,627
Reliance [Member]
Assets:
Cash and due from banks			$ 5,013
Federal funds sold and securities purchased under reverse repurchase agreements			6,900
Securities			54,843
Acquired loans			117,447
Premises and equipment, net			3,700
Identifiable intangible assets			1,850
Other real estate			475
Other assets			6,037
Total assets			196,265
Liabilities:
Deposits			166,158
Other borrowings			17,469
Other liabilities			1,322
Total liabilities			184,949
Net identifiable assets acquired at fair value			11,316
Goodwill			13,471
Total consideration paid			$ 24,787

XML

Securities Available for Sale and Held to Maturity - Amortized Cost and Estimated Fair Value of Available for Sale and Held to Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	$ 1,935,102	$ 2,262,130
Securities Available for Sale, Gross Unrealized Gains	810	4,448
Securities Available for Sale, Gross Unrealized (Losses)	(71,279)	(27,943)
Securities Available for Sale, Estimated Fair Value	1,864,633	2,238,635
Securities Held to Maturity, Amortized Cost	943,883	1,056,486
Securities Held to Maturity, Gross Unrealized Gains	276	3,954
Securities Held to Maturity, Gross Unrealized (Losses)	(36,842)	(14,193)
Securities Held to Maturity, Estimated Fair Value	907,317	1,046,247
U.S. Government Agency Obligations [Member]
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	33,511	45,763
Securities Available for Sale, Gross Unrealized Gains	126	322
Securities Available for Sale, Gross Unrealized (Losses)	(1,266)	(800)
Securities Available for Sale, Estimated Fair Value	32,371	45,285
Securities Held to Maturity, Amortized Cost	3,725	3,692
Securities Held to Maturity, Gross Unrealized Gains	26	182
Securities Held to Maturity, Gross Unrealized (Losses)	0	0
Securities Held to Maturity, Estimated Fair Value	3,751	3,874
Obligations of States and Political Subdivisions [Member]
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	57,127	78,433
Securities Available for Sale, Gross Unrealized Gains	201	850
Securities Available for Sale, Gross Unrealized (Losses)	(64)	(54)
Securities Available for Sale, Estimated Fair Value	57,264	79,229
Securities Held to Maturity, Amortized Cost	42,623	46,039
Securities Held to Maturity, Gross Unrealized Gains	173	1,044
Securities Held to Maturity, Gross Unrealized (Losses)	(156)	(59)
Securities Held to Maturity, Estimated Fair Value	42,640	47,024
Residential Mortgage Pass-Through Securities Guaranteed by GNMA [Member]
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	68,844	66,634
Securities Available for Sale, Gross Unrealized Gains	118	215
Securities Available for Sale, Gross Unrealized (Losses)	(3,115)	(1,103)
Securities Available for Sale, Estimated Fair Value	65,847	65,746
Securities Held to Maturity, Amortized Cost	12,316	13,539
Securities Held to Maturity, Gross Unrealized Gains	33	207
Securities Held to Maturity, Gross Unrealized (Losses)	(389)	(73)
Securities Held to Maturity, Estimated Fair Value	11,960	13,673
Residential Mortgage Pass-Through Securities Issued by FNMA and FHLMC [Member]
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	713,673	824,872
Securities Available for Sale, Gross Unrealized Gains	125	827
Securities Available for Sale, Gross Unrealized (Losses)	(29,324)	(11,249)
Securities Available for Sale, Estimated Fair Value	684,474	814,450
Securities Held to Maturity, Amortized Cost	119,040	133,975
Securities Held to Maturity, Gross Unrealized Gains	3	210
Securities Held to Maturity, Gross Unrealized (Losses)	(4,652)	(1,559)
Securities Held to Maturity, Estimated Fair Value	114,391	132,626
Other Residential Mortgage-Backed Securities Issued or Guaranteed by FNMA, FHLMC or GNMA [Member]
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	872,699	1,028,176
Securities Available for Sale, Gross Unrealized Gains	86	1,808
Securities Available for Sale, Gross Unrealized (Losses)	(32,712)	(13,194)
Securities Available for Sale, Estimated Fair Value	840,073	1,016,790
Securities Held to Maturity, Amortized Cost	600,635	678,926
Securities Held to Maturity, Gross Unrealized Gains	0	1,209
Securities Held to Maturity, Gross Unrealized (Losses)	(27,473)	(11,065)
Securities Held to Maturity, Estimated Fair Value	573,162	669,070
Commercial Mortgage-Backed Securities Issued or Guaranteed by FNMA, FHLMC or GNMA [Member]
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Securities Available for Sale, Amortized Cost	189,248	218,252
Securities Available for Sale, Gross Unrealized Gains	154	426
Securities Available for Sale, Gross Unrealized (Losses)	(4,798)	(1,543)
Securities Available for Sale, Estimated Fair Value	184,604	217,135
Securities Held to Maturity, Amortized Cost	165,544	180,315
Securities Held to Maturity, Gross Unrealized Gains	41	1,102
Securities Held to Maturity, Gross Unrealized (Losses)	(4,172)	(1,437)
Securities Held to Maturity, Estimated Fair Value	$ 161,413	$ 179,980

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Securities Available for Sale and Held to Maturity - Additional Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2013
Investments Debt And Equity Securities [Abstract]
Reclassification of Securities available for sale to securities held to maturity				$ 1,099,000,000
Net unrealized holding loss on AFS Securities at date of transfer				46,600,000
Net unrealized holding losses on AFS Securities, net of tax at date of transfer				$ 28,800,000
Net unamortized, unrealized loss on transfer of securities	$ 16,600,000
Net unamortized, unrealized loss on transfer of securities, net of tax	12,400,000
Other-than-temporary impairments	0	$ 0
Pledged to collateralize public deposits and securities sold under repurchase agreements and for other purposes as permitted by law	2,092,000,000		$ 1,834,000,000
Pledged securities providing additional contingency funding	$ 0		$ 0

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Securities Available for Sale and Held to Maturity - Securities with Gross Unrealized Losses, Segregated by Length of Impairment (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Estimated Fair Value, Less than 12 Months	$ 889,892	$ 1,554,184
Estimated Fair Value, 12 Months or More	1,758,673	1,022,055
Estimated Fair Value, Total	2,648,565	2,576,239
Gross Unrealized (Losses), Less than 12 Months	(22,238)	(14,150)
Gross Unrealized (Losses), 12 Months or More	(85,883)	(27,986)
Gross Unrealized (Losses), Total	(108,121)	(42,136)
U.S. Government Agency Obligations [Member]
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Estimated Fair Value, Less than 12 Months	0	5,214
Estimated Fair Value, 12 Months or More	26,421	29,432
Estimated Fair Value, Total	26,421	34,646
Gross Unrealized (Losses), Less than 12 Months	0	(113)
Gross Unrealized (Losses), 12 Months or More	(1,266)	(687)
Gross Unrealized (Losses), Total	(1,266)	(800)
Obligations of States and Political Subdivisions [Member]
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Estimated Fair Value, Less than 12 Months	29,786	19,345
Estimated Fair Value, 12 Months or More	3,791	3,874
Estimated Fair Value, Total	33,577	23,219
Gross Unrealized (Losses), Less than 12 Months	(179)	(80)
Gross Unrealized (Losses), 12 Months or More	(41)	(33)
Gross Unrealized (Losses), Total	(220)	(113)
Residential Mortgage Pass-Through Securities Guaranteed by GNMA [Member]
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Estimated Fair Value, Less than 12 Months	24,843	37,304
Estimated Fair Value, 12 Months or More	49,000	29,446
Estimated Fair Value, Total	73,843	66,750
Gross Unrealized (Losses), Less than 12 Months	(677)	(351)
Gross Unrealized (Losses), 12 Months or More	(2,827)	(825)
Gross Unrealized (Losses), Total	(3,504)	(1,176)
Residential Mortgage Pass-Through Securities Issued by FNMA and FHLMC [Member]
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Estimated Fair Value, Less than 12 Months	134,720	506,410
Estimated Fair Value, 12 Months or More	655,161	369,060
Estimated Fair Value, Total	789,881	875,470
Gross Unrealized (Losses), Less than 12 Months	(3,928)	(4,219)
Gross Unrealized (Losses), 12 Months or More	(30,048)	(8,589)
Gross Unrealized (Losses), Total	(33,976)	(12,808)
Other Residential Mortgage-Backed Securities Issued or Guaranteed by FNMA, FHLMC or GNMA [Member]
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Estimated Fair Value, Less than 12 Months	531,793	755,013
Estimated Fair Value, 12 Months or More	865,762	534,955
Estimated Fair Value, Total	1,397,555	1,289,968
Gross Unrealized (Losses), Less than 12 Months	(14,120)	(7,668)
Gross Unrealized (Losses), 12 Months or More	(46,065)	(16,591)
Gross Unrealized (Losses), Total	(60,185)	(24,259)
Commercial Mortgage-Backed Securities Issued or Guaranteed by FNMA, FHLMC or GNMA [Member]
Schedule of Available For Sale and Held to Maturity Securities [Line Items]
Estimated Fair Value, Less than 12 Months	168,750	230,898
Estimated Fair Value, 12 Months or More	158,538	55,288
Estimated Fair Value, Total	327,288	286,186
Gross Unrealized (Losses), Less than 12 Months	(3,334)	(1,719)
Gross Unrealized (Losses), 12 Months or More	(5,636)	(1,261)
Gross Unrealized (Losses), Total	$ (8,970)	$ (2,980)

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Securities Available for Sale and Held to Maturity - Gains and Losses as a Result of Calls and Disposition of Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Gain Loss On Investments [Abstract]
Proceeds from calls and sales of securities	$ 0	$ 1,273	$ 0	$ 27,682
Gross realized gains	0	15	0	16
Gross realized (losses)	$ 0	$ (1)	$ 0	$ (1)

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Securities Available for Sale and Held to Maturity - Contractual Maturities of Available for Sale and Held to Maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Securities Available for Sale, Amortized Cost [Abstract]
Due in one year or less	$ 25,525
Due after one year through five years	37,426
Due after five years through ten years	3,124
Due after ten years	24,563
Total amortized cost, before mortgage-backed securities	90,638
Mortgage-backed securities	1,844,464
Total	1,935,102
Securities Available for Sale, Estimated Fair Value [Abstract]
Due in one year or less	25,554
Due after one year through five years	37,661
Due after five years through ten years	3,054
Due after ten years	23,366
Total fair value, before mortgage-backed securities	89,635
Mortgage-backed securities	1,774,998
Total	1,864,633	$ 2,238,635
Securities Held to Maturity, Amortized Cost [Abstract]
Due in one year or less	170
Due after one year through five years	41,912
Due after five years through ten years	4,266
Due after ten years	0
Total amortized cost, before mortgage-backed securities	46,348
Mortgage-backed securities	897,535
Securities Held to Maturity, Amortized Cost	943,883	1,056,486
Securities Held to Maturity, Estimated Fair Value [Abstract]
Due in one year or less	170
Due after one year through five years	41,934
Due after five years through ten years	4,287
Due after ten years	0
Total fair value, before mortgage-backed securities	46,391
Mortgage-backed securities	860,926
Total	$ 907,317	$ 1,046,247

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Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Loan Portfolio Held for Investment (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loan Portfolio [Abstract]
Total LHFI	$ 8,747,030	$ 8,569,967
Allowance for loan losses, LHFI	(88,874)	(76,733)
Net LHFI	8,658,156	8,493,234
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Loan Portfolio [Abstract]
Total LHFI	1,031,491	987,624
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Loan Portfolio [Abstract]
Total LHFI	1,801,029	1,675,311
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Loan Portfolio [Abstract]
Total LHFI	453,687	517,956
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Loan Portfolio [Abstract]
Total LHFI	2,294,289	2,193,823
Commercial and Industrial Loans [Member]
Loan Portfolio [Abstract]
Total LHFI	1,565,922	1,570,345
Consumer Loans [Member]
Loan Portfolio [Abstract]
Total LHFI	182,709	171,918
State and Other Political Subdivision Loans [Member]
Loan Portfolio [Abstract]
Total LHFI	929,178	952,483
Other Loans [Member]
Loan Portfolio [Abstract]
Total LHFI	$ 488,725	$ 500,507

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Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Additional Information (Details 1)	9 Months Ended
	Sep. 30, 2018 USD ($) Region	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Financing Receivable Impaired [Line Items]
Maximum concentration of loan as a percentage of total LHFI	10.00%
Key market regions | Region	5
Carrying amounts of nonaccrual LHFI considered for impairment analysis	$ 67,800,000		$ 67,600,000
Nonaccrual	67,836,000		67,575,000
Minimum loan amount for loan to be specifically reviewed for impairment and deemed impaired	500,000
Amount held by company of foreclosure or in substance repossession of consumer mortgage LHFI classified as TDRs	203,000		366,000
TDRs Classified as Consumer mortgage LHFI in the process of formal disclosure	55,000		0
LHFI Classified as TDRs	36,000,000	$ 24,400,000
LHFI classified as TDRs from credits with interest only payments	24,700,000	21,100,000
Unused Commitments on Troubled Debt Restructurings	7,700,000	0
Financing receivable, related allowance	14,300,000	393,000
Financing receivable, related charge-offs	4,700,000	126,000
Troubled Debt Restructurings [Member]
Financing Receivable Impaired [Line Items]
Nonaccrual	$ 33,617,000	$ 23,939,000	$ 23,200,000

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Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Aging Analysis of Past Due and Nonaccrual LHFI by Loan Type (Details) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		$ 12,314	$ 18,433
Nonaccrual		67,836	67,575
Current Loans		8,666,880	8,483,959
Total LHFI		8,747,030	8,569,967
Past Due 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		9,716	12,390
Past Due 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		1,872	3,872
Past Due 90 Days or More [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	[1]	726	2,171
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		208	392
Nonaccrual		2,262	2,105
Current Loans		1,029,021	985,127
Total LHFI		1,031,491	987,624
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member] | Past Due 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		203	391
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member] | Past Due 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		5	1
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		7,377	10,413
Nonaccrual		15,164	19,022
Current Loans		1,778,488	1,645,876
Total LHFI		1,801,029	1,675,311
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		5,626	6,412
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		1,304	2,084
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	[1]	447	1,917
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		536	2,575
Nonaccrual		5,389	12,608
Current Loans		2,288,364	2,178,640
Total LHFI		2,294,289	2,193,823
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		256	2,319
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		280	256
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		5
Nonaccrual		742	212
Current Loans		452,940	517,744
Total LHFI		453,687	517,956
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member] | Past Due 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		5
Commercial and Industrial Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		1,757	2,004
Nonaccrual		33,870	33,338
Current Loans		1,530,295	1,535,003
Total LHFI		1,565,922	1,570,345
Commercial and Industrial Loans [Member] | Past Due 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		1,727	759
Commercial and Industrial Loans [Member] | Past Due 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		9	1,233
Commercial and Industrial Loans [Member] | Past Due 90 Days or More [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	[1]	21	12
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		1,979	2,638
Nonaccrual		228	135
Current Loans		180,502	169,145
Total LHFI		182,709	171,918
Consumer Loans [Member] | Past Due 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		1,480	2,141
Consumer Loans [Member] | Past Due 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		241	255
Consumer Loans [Member] | Past Due 90 Days or More [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due	[1]	258	242
State and Other Political Subdivision Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due			389
Nonaccrual		8,762
Current Loans		920,416	952,094
Total LHFI		929,178	952,483
State and Other Political Subdivision Loans [Member] | Past Due 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due			350
State and Other Political Subdivision Loans [Member] | Past Due 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due			39
Other Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		452	22
Nonaccrual		1,419	155
Current Loans		486,854	500,330
Total LHFI		488,725	500,507
Other Loans [Member] | Past Due 30 to 59 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		419	18
Other Loans [Member] | Past Due 60 to 89 Days [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Total Past Due		$ 33	$ 4

[1] Past due 90 days or more but still accruing interest.

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Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Impaired Financing Receivables (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Loan and Lease Receivables, Impaired [Abstract]
Total LHFI Unpaid Principal Balance	$ 60,202	$ 60,387
Total LHFI With No Related Allowance Recorded	23,648	42,674
Total LHFI With an Allowance Recorded	28,807	6,262
Total LHFI Carrying Amount	52,455	48,936
Related Allowance	15,749	1,743
Average Recorded Investment	45,230	38,005
Commercial and Industrial Loans [Member]
Loan and Lease Receivables, Impaired [Abstract]
Total LHFI Unpaid Principal Balance	39,845	36,874
Total LHFI With No Related Allowance Recorded	14,657	31,281
Total LHFI With an Allowance Recorded	19,045	518
Total LHFI Carrying Amount	33,702	31,799
Related Allowance	13,869	131
Average Recorded Investment	28,218	22,734
Consumer Loans [Member]
Loan and Lease Receivables, Impaired [Abstract]
Total LHFI Unpaid Principal Balance	3	17
Total LHFI With No Related Allowance Recorded	0	0
Total LHFI With an Allowance Recorded	3	17
Total LHFI Carrying Amount	3	17
Related Allowance	0	0
Average Recorded Investment	6	9
State and Other Political Subdivision Loans [Member]
Loan and Lease Receivables, Impaired [Abstract]
Total LHFI Unpaid Principal Balance	8,765	0
Total LHFI With No Related Allowance Recorded	4,079	0
Total LHFI With an Allowance Recorded	4,683	0
Total LHFI Carrying Amount	8,762	0
Related Allowance	683	0
Average Recorded Investment	4,381	0
Other Loans [Member]
Loan and Lease Receivables, Impaired [Abstract]
Total LHFI Unpaid Principal Balance	1,432	556
Total LHFI With No Related Allowance Recorded	230	0
Total LHFI With an Allowance Recorded	1,076	556
Total LHFI Carrying Amount	1,306	556
Related Allowance	1,076	41
Average Recorded Investment	816	325
Loans Secured by Real Estate [Member] | Construction, Land Development and Other Land [Member]
Loan and Lease Receivables, Impaired [Abstract]
Total LHFI Unpaid Principal Balance	1,801	1,704
Total LHFI With No Related Allowance Recorded	1,546	1,206
Total LHFI With an Allowance Recorded	26	199
Total LHFI Carrying Amount	1,572	1,405
Related Allowance	0	75
Average Recorded Investment	1,747	1,923
Loans Secured by Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member]
Loan and Lease Receivables, Impaired [Abstract]
Total LHFI Unpaid Principal Balance	4,771	6,031
Total LHFI With No Related Allowance Recorded	126	160
Total LHFI With an Allowance Recorded	3,614	4,576
Total LHFI Carrying Amount	3,740	4,736
Related Allowance	43	1,331
Average Recorded Investment	4,217	4,693
Loans Secured by Real Estate [Member] | Secured by Nonfarm, Nonresidential Properties [Member]
Loan and Lease Receivables, Impaired [Abstract]
Total LHFI Unpaid Principal Balance	3,585	15,205
Total LHFI With No Related Allowance Recorded	3,010	10,027
Total LHFI With an Allowance Recorded	360	396
Total LHFI Carrying Amount	3,370	10,423
Related Allowance	78	165
Average Recorded Investment	5,845	8,321
Loans Secured by Real Estate [Member] | Other Real Estate Secured [Member]
Loan and Lease Receivables, Impaired [Abstract]
Total LHFI Unpaid Principal Balance	0	0
Total LHFI With No Related Allowance Recorded	0	0
Total LHFI With an Allowance Recorded	0	0
Total LHFI Carrying Amount	0	0
Related Allowance	0	0
Average Recorded Investment	$ 0	$ 0

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Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Impact of Modifications Classified as Troubled Debt Restructurings (Details) - Troubled Debt Restructurings [Member] $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018 USD ($) Contract	Sep. 30, 2017 USD ($) Contract	Sep. 30, 2018 USD ($) Contract	Sep. 30, 2017 USD ($) Contract
Troubled Debt Restructurings [Abstract]
Number of Contracts | Contract	12	8	38	26
Pre-Modification Outstanding Recorded Investment	$ 11,274	$ 13,038	$ 24,798	$ 14,791
Post-Modification Outstanding Recorded Investment	$ 10,183	$ 13,039	$ 23,249	$ 14,785
Secured by 1-4 Family Residential Properties [Member]
Troubled Debt Restructurings [Abstract]
Number of Contracts | Contract	3	1	19	17
Pre-Modification Outstanding Recorded Investment	$ 121	$ 112	$ 1,873	$ 1,280
Post-Modification Outstanding Recorded Investment	$ 121	$ 113	$ 1,432	$ 1,290
Secured by Nonfarm, Nonresidential Properties [Member]
Troubled Debt Restructurings [Abstract]
Number of Contracts | Contract		1		1
Pre-Modification Outstanding Recorded Investment		$ 426		$ 426
Post-Modification Outstanding Recorded Investment		$ 426		$ 426
Commercial and Industrial Loans [Member]
Troubled Debt Restructurings [Abstract]
Number of Contracts | Contract	9	6	15	7
Pre-Modification Outstanding Recorded Investment	$ 11,153	$ 12,500	$ 22,899	$ 12,744
Post-Modification Outstanding Recorded Investment	$ 10,062	$ 12,500	$ 21,791	$ 12,744
Construction, Land Development and Other Land [Member]
Troubled Debt Restructurings [Abstract]
Number of Contracts | Contract			1	1
Pre-Modification Outstanding Recorded Investment			$ 22	$ 341
Post-Modification Outstanding Recorded Investment			$ 22	$ 325
Consumer Loans [Member]
Troubled Debt Restructurings [Abstract]
Number of Contracts | Contract			3
Pre-Modification Outstanding Recorded Investment			$ 4
Post-Modification Outstanding Recorded Investment			$ 4

XML

Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Troubled Debt Restructuring Subsequently Defaulted (Details) - Troubled Debt Restructurings that Subsequently Defaulted [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($) Contract	Sep. 30, 2017 USD ($) Contract
Troubled Debt Restructurings [Abstract]
Number of Contracts | Contract	13	6
Recorded Investment | $	$ 14,327	$ 64
Construction, Land Development and Other Land [Member]
Troubled Debt Restructurings [Abstract]
Number of Contracts | Contract	1	0
Recorded Investment | $	$ 21	$ 0
Secured by 1-4 Family Residential Properties [Member]
Troubled Debt Restructurings [Abstract]
Number of Contracts | Contract	6	4
Recorded Investment | $	$ 321	$ 64
Commercial and Industrial Loans [Member]
Troubled Debt Restructurings [Abstract]
Number of Contracts | Contract	6	2
Recorded Investment | $	$ 13,985	$ 0

XML

Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Troubled Debt Restructuring Related to Loans Held for Investment, Excluding Covered Loans, by Loan Type (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Financing Receivable Modifications [Line Items]
Nonaccrual	$ 67,836	$ 67,575
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Financing Receivable Modifications [Line Items]
Nonaccrual	2,262	2,105
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable Modifications [Line Items]
Nonaccrual	15,164	19,022
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable Modifications [Line Items]
Nonaccrual	5,389	12,608
Commercial and Industrial Loans [Member]
Financing Receivable Modifications [Line Items]
Nonaccrual	33,870	33,338
Consumer Loans [Member]
Financing Receivable Modifications [Line Items]
Nonaccrual	228	135
Other Loans [Member]
Financing Receivable Modifications [Line Items]
Nonaccrual	1,419	155
Troubled Debt Restructurings [Member]
Financing Receivable Modifications [Line Items]
Accruing	2,346		$ 440
Nonaccrual	33,617	$ 23,200	23,939
Total	35,963		24,379
Troubled Debt Restructurings [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Financing Receivable Modifications [Line Items]
Accruing	0		0
Nonaccrual	26		272
Total	26		272
Troubled Debt Restructurings [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable Modifications [Line Items]
Accruing	563		14
Nonaccrual	3,052		3,077
Total	3,615		3,091
Troubled Debt Restructurings [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable Modifications [Line Items]
Accruing	0		426
Nonaccrual	360		436
Total	360		862
Troubled Debt Restructurings [Member] | Commercial and Industrial Loans [Member]
Financing Receivable Modifications [Line Items]
Accruing	1,783		0
Nonaccrual	29,636		20,153
Total	31,419		20,153
Troubled Debt Restructurings [Member] | Consumer Loans [Member]
Financing Receivable Modifications [Line Items]
Accruing	0		0
Nonaccrual	3		1
Total	3		$ 1
Troubled Debt Restructurings [Member] | Other Loans [Member]
Financing Receivable Modifications [Line Items]
Accruing	0
Nonaccrual	540
Total	$ 540

XML

Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Additional Information (Details 2)	9 Months Ended
	Sep. 30, 2018 USD ($) KeyRatio LoanPool CreditRiskGrade	Dec. 31, 2017 USD ($)
Financing Receivable, Recorded Investment, Aging [Abstract]
Number of days used as baseline in evaluating collateral documentation exceptions for loan policy	90 days
Number of key quality ratios | KeyRatio	6
LHFS past due 90 days or more	$ 34,100,000	$ 35,500,000
Percentage of outstanding principal to be repurchased under GNMA optional repurchase program	100.00%
Financing Receivable [Abstract]
Number of primary commercial loan groups | LoanPool	9
Number of individual credit risk grades | CreditRiskGrade	10
Minimum [Member]
Financing Receivable [Abstract]
Period to conduct asset review	6 months
Credit amount used as baseline in evaluating loan policy	$ 100,000
Maximum [Member]
Financing Receivable [Abstract]
Period to conduct asset review	18 months

XML

Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Summary of LHFI by Loan Type and Credit Quality Indicator (Details) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Financing Receivable [Abstract]
Current		$ 8,666,880	$ 8,483,959
Financing Receivable, Recorded Investment, Past Due		12,314	18,433
Nonaccrual		67,836	67,575
Past Due 90 Days or More [Member]
Financing Receivable [Abstract]
Financing Receivable, Recorded Investment, Past Due	[1]	726	2,171
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Current		1,029,021	985,127
Financing Receivable, Recorded Investment, Past Due		208	392
Nonaccrual		2,262	2,105
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Current		1,778,488	1,645,876
Financing Receivable, Recorded Investment, Past Due		7,377	10,413
Nonaccrual		15,164	19,022
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Financing Receivable [Abstract]
Financing Receivable, Recorded Investment, Past Due	[1]	447	1,917
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Current		2,288,364	2,178,640
Financing Receivable, Recorded Investment, Past Due		536	2,575
Nonaccrual		5,389	12,608
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Current		452,940	517,744
Financing Receivable, Recorded Investment, Past Due		5
Nonaccrual		742	212
Commercial and Industrial Loans [Member]
Financing Receivable [Abstract]
Current		1,530,295	1,535,003
Financing Receivable, Recorded Investment, Past Due		1,757	2,004
Nonaccrual		33,870	33,338
Commercial and Industrial Loans [Member] | Past Due 90 Days or More [Member]
Financing Receivable [Abstract]
Financing Receivable, Recorded Investment, Past Due	[1]	21	12
Consumer Loans [Member]
Financing Receivable [Abstract]
Current		180,502	169,145
Financing Receivable, Recorded Investment, Past Due		1,979	2,638
Nonaccrual		228	135
Consumer Loans [Member] | Past Due 90 Days or More [Member]
Financing Receivable [Abstract]
Financing Receivable, Recorded Investment, Past Due	[1]	258	242
State and Other Political Subdivision Loans [Member]
Financing Receivable [Abstract]
Current		920,416	952,094
Financing Receivable, Recorded Investment, Past Due			389
Nonaccrual		8,762
Other Loans [Member]
Financing Receivable [Abstract]
Current		486,854	500,330
Financing Receivable, Recorded Investment, Past Due		452	22
Nonaccrual		1,419	155
Commercial LHFI [Member]
Financing Receivable [Abstract]
Financing receivable commercial		6,821,958	6,788,151
Commercial LHFI [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		966,114	926,881
Commercial LHFI [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		129,193	132,563
Commercial LHFI [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		2,294,226	2,193,745
Commercial LHFI [Member] | Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		453,064	517,553
Commercial LHFI [Member] | Commercial and Industrial Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		1,565,922	1,570,345
Commercial LHFI [Member] | State and Other Political Subdivision Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		929,178	952,483
Commercial LHFI [Member] | Other Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		484,261	494,581
Commercial LHFI [Member] | Pass [Member]
Financing Receivable [Abstract]
Financing receivable commercial		6,660,632	6,554,846
Commercial LHFI [Member] | Pass [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		961,316	922,563
Commercial LHFI [Member] | Pass [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		125,998	127,405
Commercial LHFI [Member] | Pass [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		2,259,388	2,135,749
Commercial LHFI [Member] | Pass [Member] | Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		452,095	517,036
Commercial LHFI [Member] | Pass [Member] | Commercial and Industrial Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		1,490,431	1,437,590
Commercial LHFI [Member] | Pass [Member] | State and Other Political Subdivision Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		913,286	936,420
Commercial LHFI [Member] | Pass [Member] | Other Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		458,118	478,083
Commercial LHFI [Member] | Special Mention [Member]
Financing Receivable [Abstract]
Financing receivable commercial		34,327	41,764
Commercial LHFI [Member] | Special Mention [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		78	316
Commercial LHFI [Member] | Special Mention [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		175	134
Commercial LHFI [Member] | Special Mention [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		3,052	6,684
Commercial LHFI [Member] | Special Mention [Member] | Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		454
Commercial LHFI [Member] | Special Mention [Member] | Commercial and Industrial Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		9,721	28,780
Commercial LHFI [Member] | Special Mention [Member] | State and Other Political Subdivision Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		5,250	5,850
Commercial LHFI [Member] | Special Mention [Member] | Other Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		15,597
Commercial LHFI [Member] | Substandard [Member]
Financing Receivable [Abstract]
Financing receivable commercial		124,336	189,722
Commercial LHFI [Member] | Substandard [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		4,512	3,780
Commercial LHFI [Member] | Substandard [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		2,960	4,948
Commercial LHFI [Member] | Substandard [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		31,302	50,785
Commercial LHFI [Member] | Substandard [Member] | Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		515	517
Commercial LHFI [Member] | Substandard [Member] | Commercial and Industrial Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		63,936	103,089
Commercial LHFI [Member] | Substandard [Member] | State and Other Political Subdivision Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		10,642	10,213
Commercial LHFI [Member] | Substandard [Member] | Other Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		10,469	16,390
Commercial LHFI [Member] | Doubtful [Member]
Financing Receivable [Abstract]
Financing receivable commercial		2,663	1,819
Commercial LHFI [Member] | Doubtful [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		208	222
Commercial LHFI [Member] | Doubtful [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		60	76
Commercial LHFI [Member] | Doubtful [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		484	527
Commercial LHFI [Member] | Doubtful [Member] | Commercial and Industrial Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		1,834	886
Commercial LHFI [Member] | Doubtful [Member] | Other Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		77	108
Consumer LHFI [Member]
Financing Receivable [Abstract]
Financing receivable commercial		8,747,030	8,569,967
Current		1,901,700	1,752,484
Nonaccrual		14,377	16,669
Subtotal		1,925,072	1,781,816
Consumer LHFI [Member] | Past Due 30-89 Days [Member]
Financing Receivable [Abstract]
Financing Receivable, Recorded Investment, Past Due		8,290	10,612
Consumer LHFI [Member] | Past Due 90 Days or More [Member]
Financing Receivable [Abstract]
Financing Receivable, Recorded Investment, Past Due		705	2,051
Consumer LHFI [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		1,031,491	987,624
Current		65,028	60,240
Nonaccrual		346	161
Subtotal		65,377	60,743
Consumer LHFI [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member] | Past Due 30-89 Days [Member]
Financing Receivable [Abstract]
Financing Receivable, Recorded Investment, Past Due		3	342
Consumer LHFI [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		1,801,029	1,675,311
Current		1,651,019	1,516,691
Nonaccrual		13,804	16,374
Subtotal		1,671,836	1,542,748
Consumer LHFI [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 30-89 Days [Member]
Financing Receivable [Abstract]
Financing Receivable, Recorded Investment, Past Due		6,566	7,874
Consumer LHFI [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Financing Receivable [Abstract]
Financing Receivable, Recorded Investment, Past Due		447	1,809
Consumer LHFI [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		2,294,289	2,193,823
Current		63	78
Subtotal		63	78
Consumer LHFI [Member] | Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Financing Receivable [Abstract]
Financing receivable commercial		453,687	517,956
Current		623	403
Subtotal		623	403
Consumer LHFI [Member] | Commercial and Industrial Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		1,565,922	1,570,345
Consumer LHFI [Member] | Consumer Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		182,709	171,918
Current		180,503	169,146
Nonaccrual		227	134
Subtotal		182,709	171,918
Consumer LHFI [Member] | Consumer Loans [Member] | Past Due 30-89 Days [Member]
Financing Receivable [Abstract]
Financing Receivable, Recorded Investment, Past Due		1,721	2,396
Consumer LHFI [Member] | Consumer Loans [Member] | Past Due 90 Days or More [Member]
Financing Receivable [Abstract]
Financing Receivable, Recorded Investment, Past Due		258	242
Consumer LHFI [Member] | State and Other Political Subdivision Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		929,178	952,483
Consumer LHFI [Member] | Other Loans [Member]
Financing Receivable [Abstract]
Financing receivable commercial		488,725	500,507
Current		4,464	5,926
Subtotal		$ 4,464	$ 5,926

[1] Past due 90 days or more but still accruing interest.

XML

Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Additional Information (Details 3)	9 Months Ended
	Sep. 30, 2018 Loan Factor Scale
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Number of loan types for commercial portfolio | Loan	9
Number of risk rate factors for commercial loans | Factor	450
Minimum score for qualitative risk factor | Scale	0
Maximum score for qualitative risk factor | Scale	100
Number of loan types for consumer portfolio | Loan	5
Number of unique qualitative factors used to analyze consumer loans | Factor	5

XML

Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Summary of Balance in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Total	$ 88,874		$ 76,733
Allowance for Loan Losses, LHFI [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually	15,749		1,743
Collectively	73,125		74,990
Total	88,874	$ 83,566	76,733	$ 80,332	$ 76,184	$ 71,265
Allowance for Loan Losses, LHFI [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually	13,869		131
Collectively	19,448		22,720
Total	33,317		22,851	19,780		22,011
Allowance for Loan Losses, LHFI [Member] | Consumer Loans [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Collectively	3,394		3,470
Total	3,394		3,470	4,456		3,241
Allowance for Loan Losses, LHFI [Member] | State and Other Political Subdivision Loans [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually	683
Collectively	510		789
Total	1,193		789	811		859
Allowance for Loan Losses, LHFI [Member] | Other Loans [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually	1,076		41
Collectively	4,364		4,625
Total	5,440		4,666	4,204		2,492
Allowance for Loan Losses, LHFI [Member] | Loans Secured by Real Estate [Member] | Construction, Land Development and Other Land [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually			75
Collectively	8,414		7,790
Total	8,414		7,865	8,648		9,085
Allowance for Loan Losses, LHFI [Member] | Loans Secured by Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually	43		1,331
Collectively	9,265		9,543
Total	9,308		10,874	10,280		10,347
Allowance for Loan Losses, LHFI [Member] | Loans Secured by Real Estate [Member] | Secured by Nonfarm, Nonresidential Properties [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Individually	78		165
Collectively	24,781		23,263
Total	24,859		23,428	28,748		20,967
Allowance for Loan Losses, LHFI [Member] | Loans Secured by Real Estate [Member] | Other Real Estate Secured [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Collectively	2,949		2,790
Total	$ 2,949		$ 2,790	$ 3,405		$ 2,263

XML

Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Summary of Loan Type Related to Each Balance in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loans and Leases Receivable, Other Information [Abstract]
LHFI, Individually Evaluated For Impairment	$ 52,500	$ 48,900
Total LHFI	8,747,030	8,569,967
Allowance for Loan Losses, LHFI [Member]
Loans and Leases Receivable, Other Information [Abstract]
LHFI, Individually Evaluated For Impairment	52,455	48,936
LHFI, Collectively Evaluated For Impairment	8,694,575	8,521,031
Total LHFI	8,747,030	8,569,967
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Loans and Leases Receivable, Other Information [Abstract]
Total LHFI	1,031,491	987,624
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member] | Allowance for Loan Losses, LHFI [Member]
Loans and Leases Receivable, Other Information [Abstract]
LHFI, Individually Evaluated For Impairment	1,572	1,405
LHFI, Collectively Evaluated For Impairment	1,029,919	986,219
Total LHFI	1,031,491	987,624
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Loans and Leases Receivable, Other Information [Abstract]
Total LHFI	1,801,029	1,675,311
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Allowance for Loan Losses, LHFI [Member]
Loans and Leases Receivable, Other Information [Abstract]
LHFI, Individually Evaluated For Impairment	3,740	4,736
LHFI, Collectively Evaluated For Impairment	1,797,289	1,670,575
Total LHFI	1,801,029	1,675,311
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Loans and Leases Receivable, Other Information [Abstract]
Total LHFI	2,294,289	2,193,823
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member] | Allowance for Loan Losses, LHFI [Member]
Loans and Leases Receivable, Other Information [Abstract]
LHFI, Individually Evaluated For Impairment	3,370	10,423
LHFI, Collectively Evaluated For Impairment	2,290,919	2,183,400
Total LHFI	2,294,289	2,193,823
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Loans and Leases Receivable, Other Information [Abstract]
Total LHFI	453,687	517,956
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member] | Allowance for Loan Losses, LHFI [Member]
Loans and Leases Receivable, Other Information [Abstract]
LHFI, Collectively Evaluated For Impairment	453,687	517,956
Total LHFI	453,687	517,956
Commercial and Industrial Loans [Member]
Loans and Leases Receivable, Other Information [Abstract]
Total LHFI	1,565,922	1,570,345
Commercial and Industrial Loans [Member] | Allowance for Loan Losses, LHFI [Member]
Loans and Leases Receivable, Other Information [Abstract]
LHFI, Individually Evaluated For Impairment	33,702	31,799
LHFI, Collectively Evaluated For Impairment	1,532,220	1,538,546
Total LHFI	1,565,922	1,570,345
Consumer Loans [Member]
Loans and Leases Receivable, Other Information [Abstract]
Total LHFI	182,709	171,918
Consumer Loans [Member] | Allowance for Loan Losses, LHFI [Member]
Loans and Leases Receivable, Other Information [Abstract]
LHFI, Individually Evaluated For Impairment	3	17
LHFI, Collectively Evaluated For Impairment	182,706	171,901
Total LHFI	182,709	171,918
State and Other Political Subdivision Loans [Member]
Loans and Leases Receivable, Other Information [Abstract]
Total LHFI	929,178	952,483
State and Other Political Subdivision Loans [Member] | Allowance for Loan Losses, LHFI [Member]
Loans and Leases Receivable, Other Information [Abstract]
LHFI, Individually Evaluated For Impairment	8,762
LHFI, Collectively Evaluated For Impairment	920,416	952,483
Total LHFI	929,178	952,483
Other Loans [Member]
Loans and Leases Receivable, Other Information [Abstract]
Total LHFI	488,725	500,507
Other Loans [Member] | Allowance for Loan Losses, LHFI [Member]
Loans and Leases Receivable, Other Information [Abstract]
LHFI, Individually Evaluated For Impairment	1,306	556
LHFI, Collectively Evaluated For Impairment	487,419	499,951
Total LHFI	$ 488,725	$ 500,507

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Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI - Change in Allowance for Loan Losses (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				$ 76,733
Provision for loan losses, LHFI		$ 8,673	$ 3,672	15,801	$ 9,355
Balance at end of period		88,874		88,874
Allowance for Loan Losses, LHFI [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period		83,566	76,184	76,733	71,265
Transfers	[1]	772		1,554
Loans charged-off		(7,017)	(2,752)	(12,980)	(9,072)
Recoveries		2,880	3,228	7,766	8,784
Net (charge-offs) recoveries		(4,137)	476	(5,214)	(288)
Provision for loan losses, LHFI		8,673	3,672	15,801	9,355
Balance at end of period		88,874	80,332	88,874	80,332
Allowance for Loan Losses, LHFI [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				7,865	9,085
Transfers	[2]			584
Loans charged-off				(123)	(79)
Recoveries				1,039	1,257
Provision for loan losses, LHFI				(951)	(1,615)
Balance at end of period		8,414	8,648	8,414	8,648
Allowance for Loan Losses, LHFI [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				10,874	10,347
Transfers	[2]			182
Loans charged-off				(1,435)	(753)
Recoveries				439	1,429
Provision for loan losses, LHFI				(752)	(743)
Balance at end of period		9,308	10,280	9,308	10,280
Allowance for Loan Losses, LHFI [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				23,428	20,967
Transfers	[2]			446
Loans charged-off				(1,117)	(50)
Recoveries				120	289
Provision for loan losses, LHFI				1,982	7,542
Balance at end of period		24,859	28,748	24,859	28,748
Allowance for Loan Losses, LHFI [Member] | Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				2,790	2,263
Transfers	[2]			291
Recoveries				17	31
Provision for loan losses, LHFI				(149)	1,111
Balance at end of period		2,949	3,405	2,949	3,405
Allowance for Loan Losses, LHFI [Member] | Commercial and Industrial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				22,851	22,011
Transfers	[2]			46
Loans charged-off				(4,658)	(2,624)
Recoveries				2,285	1,813
Provision for loan losses, LHFI				12,793	(1,420)
Balance at end of period		33,317	19,780	33,317	19,780
Allowance for Loan Losses, LHFI [Member] | Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				3,470	3,241
Transfers	[2]			5
Loans charged-off				(1,585)	(1,809)
Recoveries				1,545	1,427
Provision for loan losses, LHFI				(41)	1,597
Balance at end of period		3,394	4,456	3,394	4,456
Allowance for Loan Losses, LHFI [Member] | State and Other Political Subdivision Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				789	859
Provision for loan losses, LHFI				404	(48)
Balance at end of period		1,193	811	1,193	811
Allowance for Loan Losses, LHFI [Member] | Other Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				4,666	2,492
Loans charged-off				(4,062)	(3,757)
Recoveries				2,321	2,538
Provision for loan losses, LHFI				2,515	2,931
Balance at end of period		$ 5,440	$ 4,204	$ 5,440	$ 4,204

[1] The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank & Trust Company (Bay Bank) merger on March 16, 2012, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage Banking Group (Heritage) acquisition on April 15, 2011 and the Reliance merger on April 7, 2017, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.

[2] The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger on March 16, 2012, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.

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Acquired Loans - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018 CreditRiskGrade	Apr. 07, 2017 USD ($)
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract]
Loans acquired in merger accounted for under FASB ASC Topic 310 30 | $		$ 7.9
Number of individual credit risk grades | CreditRiskGrade	10

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Acquired Loans - Schedule of Acquired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Acquired loans	$ 132,615		$ 261,517
Allowance for loan losses, acquired loans	(1,714)	$ (3,046)	(4,079)	$ (5,768)	$ (7,423)	$ (11,397)
Net acquired loans	130,901		257,438
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Acquired loans	6,657		23,586
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Acquired loans	25,274		61,751
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Acquired loans	66,865		114,694
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Acquired loans	8,507		16,746
Commercial and Industrial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Acquired loans	16,610		31,506
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Acquired loans	1,514		2,600
Other Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Acquired loans	$ 7,188		$ 10,634

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Acquired Loans - Changes in the Carrying Value of Acquired Loans (Details) - USD ($) $ in Thousands		9 Months Ended			12 Months Ended
		Sep. 30, 2018		Sep. 30, 2017	Dec. 31, 2017	Apr. 07, 2017
Carrying value of acquired loans [Abstract]
Carrying value, net, beginning		$ 257,438
Additions						$ 7,900
Accretion to interest income		7,870		$ 11,021
Carrying value, net, ending		130,901			$ 257,438
Acquired Not ASC 310-30 [Member]
Carrying value of acquired loans [Abstract]
Carrying value, net, beginning	[1]	77,868		42,743	42,743
Transfers	[1],[2]	(43,922)			(36,719)
Additions	[1],[3]				109,548
Accretion to interest income	[1]	782			1,578
Payments received, net	[1]	(16,096)			(39,208)
Other	[1],[4]	74			(74)
Change in allowance for loan losses, acquired loans	[1]	0			0
Carrying value, net, ending	[1]	18,706			77,868
Acquired Impaired [Member]
Carrying value of acquired loans [Abstract]
Carrying value, net, beginning		179,570		$ 218,107	218,107
Transfers		(26,497)	[5]		0
Additions	[3]				7,899
Accretion to interest income		7,870			14,924
Payments received, net		(50,940)			(68,317)
Other	[4]	(173)			(361)
Change in allowance for loan losses, acquired loans		2,365			7,318
Carrying value, net, ending		$ 112,195			$ 179,570

[1] “Acquired Not ASC 310-30” loans consist of loans that are not in scope for FASB ASC Topic 310-30.

[2] “Acquired Not ASC 310-30” loans transferred to LHFI due to the discount on these loans being fully amortized.

[3] Loans acquired in the Reliance merger on April 7, 2017.

[4] Includes miscellaneous timing adjustments as well as acquired loan terminations through foreclosure, charge-off and other terminations.

[5] During the second quarter of 2018, Trustmark transferred the remaining loans acquired in the Bay Bank merger on March 16, 2012 from acquired impaired loans to LHFI. During the third quarter of 2018, Trustmark transferred the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017 from acquired impaired loans to LHFI.

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Acquired Loans - Changes in Accretable Yield of Acquired Loans (Details) - USD ($) $ in Thousands		9 Months Ended		12 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Change in accretable difference on acquired loans [Abstract]
Accretable yield at beginning of period		$ (31,426)	$ (38,918)	$ (38,918)
Accretion to interest income		7,870	11,021
Additions due to acquisitions	[1]		(784)
Disposals, net		3,452	1,759
Transfers	[2]	5,874
Reclassification from nonaccretable difference	[3]	(4,204)	(7,204)
Accretable yield at end of period		$ (18,434)	$ (34,126)	$ (31,426)

[1] Accretable yield on loans acquired from Reliance on April 7, 2017.

[2] During the second quarter of 2018, Trustmark transferred the remaining loans acquired in the Bay Bank merger on March 16, 2012 from acquired impaired loans to LHFI. During the third quarter of 2018, Trustmark transferred the remaining loans acquired in the Heritage acquisition on April 15, 2011 and the Reliance merger on April 7, 2017 from acquired impaired loans to LHFI.

[3] Reclassifications from nonaccretable difference are due to lower loss expectations and improvements in expected cash flows.

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Acquired Loans - Components of the Allowance for Loan Losses on Acquired Loans (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period		$ 3,046	$ 7,423	$ 4,079	$ 11,397
Transfers	[1]	(772)		(1,554)
Net (charge-offs) recoveries		(93)	(2)	(53)	193
Provision for loan losses, acquired loans		(467)	(1,653)	(758)	(5,822)
Balance at end of period		$ 1,714	$ 5,768	$ 1,714	$ 5,768

[1] The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger, which were transferred from acquired impaired loans to LHFI during the second quarter of 2018, and the remaining loans acquired in the Heritage acquisition and the Reliance merger, which were transferred from acquired impaired loans to LHFI during the third quarter of 2018.

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Acquired Loans - Acquired Loans by Loan Type and Credit Quality Indicator (Details) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		$ 130,901	$ 257,438
Acquired Loans, Aging [Abstract]
Current		128,720	255,506
Acquired Loans, Past Due		3,895	5,707
Nonaccrual	[1]	0	304
Total Acquired Loans		132,615	261,517
Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	2,395	2,434
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Aging [Abstract]
Current		6,529	22,601
Acquired Loans, Past Due		128	985
Nonaccrual	[1]	0	0
Total Acquired Loans		6,657	23,586
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	25	861
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Aging [Abstract]
Current		23,942	58,490
Acquired Loans, Past Due		1,332	2,959
Nonaccrual	[1]	0	302
Total Acquired Loans		25,274	61,751
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	288	654
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Aging [Abstract]
Current		65,093	113,256
Acquired Loans, Past Due		1,772	1,438
Nonaccrual	[1]	0	0
Total Acquired Loans		66,865	114,694
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	1,475	898
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Aging [Abstract]
Current		8,492	16,614
Acquired Loans, Past Due		15	132
Nonaccrual	[1]	0	0
Total Acquired Loans		8,507	16,746
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	0	0
Commercial and Industrial Loans [Member]
Acquired Loans, Aging [Abstract]
Current		16,003	31,504
Acquired Loans, Past Due		607	0
Nonaccrual	[1]	0	2
Total Acquired Loans		16,610	31,506
Commercial and Industrial Loans [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	607	0
Consumer Loans [Member]
Acquired Loans, Aging [Abstract]
Current		1,473	2,428
Acquired Loans, Past Due		41	172
Nonaccrual	[1]	0	0
Total Acquired Loans		1,514	2,600
Consumer Loans [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	0	0
Other Loans [Member]
Acquired Loans, Aging [Abstract]
Current		7,188	10,613
Acquired Loans, Past Due		0	21
Nonaccrual	[1]	0	0
Total Acquired Loans		7,188	10,634
Other Loans [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	0	21
Commercial LHFI [Member] | Commercial Loan [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		111,386	212,826
Commercial LHFI [Member] | Pass [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		82,066	167,079
Commercial LHFI [Member] | Special Mention [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		72	2,067
Commercial LHFI [Member] | Substandard [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		25,825	40,660
Commercial LHFI [Member] | Doubtful [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		3,423	3,020
Commercial LHFI [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member] | Commercial Loan [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		5,930	22,338
Commercial LHFI [Member] | Construction, Land Development and Other Land [Member] | Pass [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		5,541	17,150
Commercial LHFI [Member] | Construction, Land Development and Other Land [Member] | Special Mention [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		25	234
Commercial LHFI [Member] | Construction, Land Development and Other Land [Member] | Substandard [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		296	4,690
Commercial LHFI [Member] | Construction, Land Development and Other Land [Member] | Doubtful [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		68	264
Commercial LHFI [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Commercial Loan [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		6,286	17,348
Commercial LHFI [Member] | Secured by 1-4 Family Residential Properties [Member] | Pass [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		5,594	14,021
Commercial LHFI [Member] | Secured by 1-4 Family Residential Properties [Member] | Special Mention [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		47	298
Commercial LHFI [Member] | Secured by 1-4 Family Residential Properties [Member] | Substandard [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		645	3,029
Commercial LHFI [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member] | Commercial Loan [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		66,865	114,660
Commercial LHFI [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Pass [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		51,123	95,147
Commercial LHFI [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Special Mention [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans			1,400
Commercial LHFI [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Substandard [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		15,223	17,583
Commercial LHFI [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Doubtful [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		519	530
Commercial LHFI [Member] | Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member] | Commercial Loan [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		8,507	16,340
Commercial LHFI [Member] | Other Real Estate Secured [Member] | Pass [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		7,906	12,730
Commercial LHFI [Member] | Other Real Estate Secured [Member] | Special Mention [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans			102
Commercial LHFI [Member] | Other Real Estate Secured [Member] | Substandard [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		177	3,031
Commercial LHFI [Member] | Other Real Estate Secured [Member] | Doubtful [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		424	477
Commercial LHFI [Member] | Commercial and Industrial Loans [Member] | Commercial Loan [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		16,610	31,506
Commercial LHFI [Member] | Commercial and Industrial Loans [Member] | Pass [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		7,366	22,157
Commercial LHFI [Member] | Commercial and Industrial Loans [Member] | Special Mention [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans			15
Commercial LHFI [Member] | Commercial and Industrial Loans [Member] | Substandard [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		6,832	7,585
Commercial LHFI [Member] | Commercial and Industrial Loans [Member] | Doubtful [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		2,412	1,749
Commercial LHFI [Member] | Other Loans [Member] | Commercial Loan [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		7,188	10,634
Commercial LHFI [Member] | Other Loans [Member] | Pass [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		4,536	5,874
Commercial LHFI [Member] | Other Loans [Member] | Special Mention [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans			18
Commercial LHFI [Member] | Other Loans [Member] | Substandard [Member]
Acquired Loans, Commercial Loans [Abstract]
Acquired loans		2,652	4,742
Consumer LHFI [Member]
Acquired Loans, Aging [Abstract]
Current		19,801	46,064
Nonaccrual	[1]		124
Subtotal		21,229	48,691
Total Acquired Loans		132,615	261,517
Consumer LHFI [Member] | Past Due 30-89 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		1,160	1,905
Consumer LHFI [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		268	598
Consumer LHFI [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Aging [Abstract]
Current		652	1,188
Subtotal		727	1,248
Total Acquired Loans		6,657	23,586
Consumer LHFI [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member] | Past Due 30-89 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		75	46
Consumer LHFI [Member] | Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due			14
Consumer LHFI [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Aging [Abstract]
Current		17,676	42,008
Nonaccrual	[1]		124
Subtotal		18,988	44,403
Total Acquired Loans		25,274	61,751
Consumer LHFI [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 30-89 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		1,044	1,687
Consumer LHFI [Member] | Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		268	584
Consumer LHFI [Member] | Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Aging [Abstract]
Current			34
Subtotal			34
Total Acquired Loans		66,865	114,694
Consumer LHFI [Member] | Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Aging [Abstract]
Current			406
Subtotal			406
Total Acquired Loans		8,507	16,746
Consumer LHFI [Member] | Commercial and Industrial Loans [Member]
Acquired Loans, Aging [Abstract]
Total Acquired Loans		16,610	31,506
Consumer LHFI [Member] | Consumer Loans [Member]
Acquired Loans, Aging [Abstract]
Current		1,473	2,428
Subtotal		1,514	2,600
Total Acquired Loans		1,514	2,600
Consumer LHFI [Member] | Consumer Loans [Member] | Past Due 30-89 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		41	172
Consumer LHFI [Member] | Other Loans [Member]
Acquired Loans, Aging [Abstract]
Total Acquired Loans		$ 7,188	$ 10,634

[1] Acquired loans not accounted for under FASB ASC Topic 310-30.

[2] Past due 90 days or more but still accruing interest.

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Acquired Loans - Aging Analysis of Past Due and Nonaccrual Acquired Loans, by Class (Details) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		$ 3,895	$ 5,707
Nonaccrual	[1]	0	304
Current		128,720	255,506
Acquired Loans		132,615	261,517
Past Due 30 to 59 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		1,157	2,340
Past Due 60 to 89 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		343	933
Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	2,395	2,434
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		128	985
Nonaccrual	[1]	0	0
Current		6,529	22,601
Acquired Loans		6,657	23,586
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member] | Past Due 30 to 59 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		103	34
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member] | Past Due 60 to 89 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		0	90
Construction, Land Development and Other Land [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	25	861
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		1,332	2,959
Nonaccrual	[1]	0	302
Current		23,942	58,490
Acquired Loans		25,274	61,751
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 30 to 59 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		703	1,691
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 60 to 89 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		341	614
Secured by 1-4 Family Residential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	288	654
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		1,772	1,438
Nonaccrual	[1]	0	0
Current		65,093	113,256
Acquired Loans		66,865	114,694
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 30 to 59 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		297	467
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 60 to 89 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		0	73
Secured by Nonfarm, Nonresidential Properties [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	1,475	898
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		15	132
Nonaccrual	[1]	0	0
Current		8,492	16,614
Acquired Loans		8,507	16,746
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member] | Past Due 30 to 59 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		15	132
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member] | Past Due 60 to 89 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		0	0
Other Real Estate Secured [Member] | Loans Secured by Real Estate [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	0	0
Commercial and Industrial Loans [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		607	0
Nonaccrual	[1]	0	2
Current		16,003	31,504
Acquired Loans		16,610	31,506
Commercial and Industrial Loans [Member] | Past Due 30 to 59 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		0	0
Commercial and Industrial Loans [Member] | Past Due 60 to 89 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		0	0
Commercial and Industrial Loans [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	607	0
Consumer Loans [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		41	172
Nonaccrual	[1]	0	0
Current		1,473	2,428
Acquired Loans		1,514	2,600
Consumer Loans [Member] | Past Due 30 to 59 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		39	16
Consumer Loans [Member] | Past Due 60 to 89 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		2	156
Consumer Loans [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	0	0
Other Loans [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		0	21
Nonaccrual	[1]	0	0
Current		7,188	10,613
Acquired Loans		7,188	10,634
Other Loans [Member] | Past Due 30 to 59 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		0	0
Other Loans [Member] | Past Due 60 to 89 Days [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due		0	0
Other Loans [Member] | Past Due 90 Days or More [Member]
Acquired Loans, Aging [Abstract]
Acquired Loans, Past Due	[2]	$ 0	$ 21

[1] Acquired loans not accounted for under FASB ASC Topic 310-30.

[2] Past due 90 days or more but still accruing interest.

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Mortgage Banking - Schedule of Activity in the Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Mortgage servicing rights [Abstract]
Balance at beginning of period	$ 84,269	$ 80,239
Origination of servicing assets	12,248	11,630
Change in fair value [Abstract]
Due to market changes	13,879	(2,218)
Due to run-off	(9,022)	(8,174)
Balance at end of period	$ 101,374	$ 81,477

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Mortgage Banking - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($) CPR	Sep. 30, 2017 USD ($) CPR
Schedule of changes in the reserve for mortgage loan [Abstract]
Assumed average prepayment speed | CPR	6.86	9.25
Average discount rate (in hundredths)	10.04%	10.28%
Mortgage servicing rights [Abstract]
Residential mortgage loans sold	$ 820.6	$ 871.9
Gains on sales of residential mortgage loans, before tax	$ 16.4	$ 13.6
Period of putback response	60 days

XML

Mortgage Banking - Schedule of Mortgage Loans Sold and Serviced for Others (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Mortgage Loans On Real Estate [Line Items]
Total mortgage loans sold and serviced for others	$ 6,759,391	$ 6,624,005
Federal National Mortgage Association [Member]
Mortgage Loans On Real Estate [Line Items]
Total mortgage loans sold and serviced for others	4,174,961	4,128,614
Government National Mortgage Association [Member]
Mortgage Loans On Real Estate [Line Items]
Total mortgage loans sold and serviced for others	2,492,009	2,421,456
Federal Home Loan Mortgage Corporation [Member]
Mortgage Loans On Real Estate [Line Items]
Total mortgage loans sold and serviced for others	69,617	47,071
Other [Member]
Mortgage Loans On Real Estate [Line Items]
Total mortgage loans sold and serviced for others	$ 22,804	$ 26,864

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Mortgage Banking - Changes in the Reserve for Mortgage Loan Servicing Putback Expense (Details) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017
Schedule of changes in the reserve for mortgage loan [Abstract]
Balance at beginning of period		$ 1,000	$ 1,130
Provision for putback expenses		0	164
Other	[1]	0	706
Balance at end of period		$ 1,000	$ 2,000

[1] Includes fair value adjustments for loans transferred due to underwriting issues as well as adjustments based on Trustmark’s mortgage loan servicing putback reserve analysis.

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Other Real Estate - Changes and Gains (Losses), Net on Other Real Estate (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Reconciliation Of Carrying Amount Of Real Estate Investments Roll Forward
Balance at beginning of period				$ 43,228	$ 62,051
Additions	[1]			10,368	7,481
Disposals				(15,264)	(18,583)
Write-downs				(1,857)	(2,593)
Balance at end of period		$ 36,475	$ 48,356	36,475	48,356
Gains (losses), net on the sale of other real estate included in other real estate expense		$ 224	$ 200	$ 1,226	$ 1,722

[1] Includes $475 thousand of other real estate acquired in the Reliance merger on April 7, 2017.

XML

Other Real Estate - Changes and Gains (Losses), Net on Other Real Estate (Parenthetical) (Details) $ in Thousands	Apr. 07, 2017 USD ($)
Reliance [Member]
Business Acquisition [Line Items]
Other real estate	$ 475

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Other Real Estate - Other Real Estate, By Type of Property (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Other real estate, excluding covered other real estate [Line Items]
Total other real estate	$ 36,475	$ 43,228	$ 48,356	$ 62,051
Construction, Land Development And Other Land Properties [Member]
Other real estate, excluding covered other real estate [Line Items]
Total other real estate	18,976	27,491
1 - 4 Family Residential Properties [Member]
Other real estate, excluding covered other real estate [Line Items]
Total other real estate	5,266	5,081
Nonfarm, Nonresidential Properties [Member]
Other real estate, excluding covered other real estate [Line Items]
Total other real estate	12,050	10,468
Other Real Estate Properties [Member]
Other real estate, excluding covered other real estate [Line Items]
Total other real estate	$ 183	$ 188

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Other Real Estate - Other Real Estate, By Geographic Location (Details) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Other real estate, excluding covered other real estate [Line Items]
Total other real estate		$ 36,475	$ 43,228	$ 48,356	$ 62,051
Alabama [Member]
Other real estate, excluding covered other real estate [Line Items]
Total other real estate		7,526	11,714
Florida [Member]
Other real estate, excluding covered other real estate [Line Items]
Total other real estate		8,931	13,937
Mississippi [Member]
Other real estate, excluding covered other real estate [Line Items]
Total other real estate	[1]	18,191	14,260
Tennessee [Member]
Other real estate, excluding covered other real estate [Line Items]
Total other real estate	[2]	1,083	2,535
Texas [Member]
Other real estate, excluding covered other real estate [Line Items]
Total other real estate		$ 744	$ 782

[1] Mississippi includes Central and Southern Mississippi Regions

[2] Tennessee includes Memphis, Tennessee and Northern Mississippi Regions

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Deposits - Deposits Summary (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Deposits [Abstract]
Noninterest-bearing demand	$ 2,786,539	$ 2,978,074
Interest-bearing demand	2,739,245	2,432,814
Savings	3,538,125	3,408,183
Time	1,893,001	1,758,441
Total deposits	$ 10,956,910	$ 10,577,512

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Securities Sold Under Repurchase Agreement - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Securities sold under repurchase agreements, secured by securities carrying amount	$ 167.1	$ 200.9

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Securities Sold Under Repurchase Agreements (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Securities sold under repurchase agreements by collateral pledged
Total securities sold under repurchase agreements	$ 90,511	$ 118,694
Other Residential Mortgage-Backed Securities Issued or Guaranteed by FNMA, FHLMC or GNMA [Member]
Securities sold under repurchase agreements by collateral pledged
Total securities sold under repurchase agreements	41,650	68,246
Commercial Mortgage-Backed Securities Issued or Guaranteed by FNMA, FHLMC or GNMA [Member]
Securities sold under repurchase agreements by collateral pledged
Total securities sold under repurchase agreements	$ 48,861	$ 50,448

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Revenue from Contracts with Customers - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018 USD ($) Contract	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) Contract Fee RevenueCategory	Sep. 30, 2017 USD ($)
Revenue From Contract With Customer [Line Items]
Number of types of interchange fees | Fee			2
Other real estate sales, net gains | $	$ 224	$ 200	$ 1,226	$ 1,722
Number of trust management revenue categories | RevenueCategory			5
Time period between service obligation completed and payment received from trust customer			30 days
Number of general categories of insurance contracts | Contract	4		4
Commercial Installment Insurance Contracts [Member]
Revenue From Contract With Customer [Line Items]
Revenue recognition contract term	1 year		1 year
Personal Insurance Contracts [Member]
Revenue From Contract With Customer [Line Items]
Revenue recognition contract term	1 year		1 year
Employee Benefits Insurance Contracts [Member]
Revenue From Contract With Customer [Line Items]
Revenue recognition contract term	1 year		1 year
Contingency Commission Insurance Contracts [Member]
Revenue From Contract With Customer [Line Items]
Revenue recognition contract term	1 year		1 year
Maximum [Member] | Insurance Contracts [Member]
Revenue From Contract With Customer [Line Items]
Revenue recognition contract term	1 year		1 year
Maximum [Member] | Personal Insurance Contracts [Member]
Revenue From Contract With Customer [Line Items]
Insurance contracts payment received period			60 days
Maximum [Member] | Employee Benefits Insurance Contracts [Member]
Revenue From Contract With Customer [Line Items]
Insurance contracts payment received period			90 days
Minimum [Member] | Personal Insurance Contracts [Member]
Revenue From Contract With Customer [Line Items]
Insurance contracts payment received period			30 days
Minimum [Member] | Employee Benefits Insurance Contracts [Member]
Revenue From Contract With Customer [Line Items]
Insurance contracts payment received period			60 days

XML

Revenue from Contracts with Customers - Summary of Noninterest Income Disaggregated by Reportable Operating Segment and Revenue Stream (Details) - USD ($) $ in Thousands		3 Months Ended			9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018	Sep. 30, 2017
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Service charges on deposit accounts		$ 11,075	$ 11,223	[1]	$ 32,579	$ 32,810	[1]
Bank card and other fees		7,459	7,150	[1]	21,155	21,020	[1]
Mortgage banking, net		8,647	4,425	[1]	28,958	23,618	[1]
Insurance commissions		10,765	10,398	[1]	30,919	29,355	[1]
Wealth management		7,789	7,530	[1]	22,834	22,617	[1]
Other, net		1,358	3,740	[1]	4,832	11,268	[1]
Security gains (losses), net			14	[1]	0	15	[1]
Total Noninterest Income		47,093	44,480	[1]	141,277	140,703	[1]
Topic 606 [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Service charges on deposit accounts		11,075	11,223	[1]	32,579	32,810	[1]
Bank card and other fees		6,522	7,127	[1]	19,928	20,812	[1]
Insurance commissions		10,765	10,398	[1]	30,919	29,355	[1]
Wealth management		7,789	7,530	[1]	22,834	22,617	[1]
Other, net		1,688	1,495	[1]	4,672	5,002	[1]
Total Noninterest Income		37,839	37,773	[1]	110,932	110,596	[1]
Not Topic 606 [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Bank card and other fees	[2]	937	23	[1]	1,227	208	[1]
Mortgage banking, net	[2]	8,647	4,425	[1]	28,958	23,618	[1]
Other, net	[2]	(330)	2,245	[1]	160	6,266	[1]
Security gains (losses), net	[1],[2]		14			15
Total Noninterest Income	[2]	9,254	6,707	[1]	30,345	30,107	[1]
General Banking Division [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Service charges on deposit accounts		11,074	11,222	[1]	32,577	32,809	[1]
Bank card and other fees		7,440	7,127	[1]	21,092	20,985	[1]
Mortgage banking, net		8,647	4,425	[1]	28,958	23,618	[1]
Wealth management		70	64	[1]	210	210	[1]
Other, net		1,326	3,718	[1]	4,750	11,193	[1]
Security gains (losses), net	[1]		14			15
Total Noninterest Income		28,557	26,570	[1]	87,587	88,830	[1]
General Banking Division [Member] | Topic 606 [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Service charges on deposit accounts		11,074	11,222	[1]	32,577	32,809	[1]
Bank card and other fees		6,503	7,104	[1]	19,865	20,777	[1]
Wealth management		70	64	[1]	210	210	[1]
Other, net		1,685	1,495	[1]	4,666	4,997	[1]
Total Noninterest Income		19,332	19,885	[1]	57,318	58,793	[1]
General Banking Division [Member] | Not Topic 606 [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Bank card and other fees	[2]	937	23	[1]	1,227	208	[1]
Mortgage banking, net	[2]	8,647	4,425	[1]	28,958	23,618	[1]
Other, net	[2]	(359)	2,223	[1]	84	6,196	[1]
Security gains (losses), net	[1],[2]		14			15
Total Noninterest Income	[2]	9,225	6,685	[1]	30,269	30,037	[1]
Wealth Management Division [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Service charges on deposit accounts		1	1	[1]	2	1	[1]
Bank card and other fees		19	23	[1]	63	35	[1]
Wealth management		7,719	7,466	[1]	22,624	22,407	[1]
Other, net		30	22	[1]	79	70	[1]
Total Noninterest Income		7,769	7,512	[1]	22,768	22,513	[1]
Wealth Management Division [Member] | Topic 606 [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Service charges on deposit accounts		1	1	[1]	2	1	[1]
Bank card and other fees		19	23	[1]	63	35	[1]
Wealth management		7,719	7,466	[1]	22,624	22,407	[1]
Other, net		1			3
Total Noninterest Income		7,740	7,490	[1]	22,692	22,443	[1]
Wealth Management Division [Member] | Not Topic 606 [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Other, net	[2]	29	22	[1]	76	70	[1]
Total Noninterest Income	[2]	29	22	[1]	76	70	[1]
Insurance Division [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Insurance commissions		10,765	10,398	[1]	30,919	29,355	[1]
Other, net		2			3	5	[1]
Total Noninterest Income		10,767	10,398	[1]	30,922	29,360	[1]
Insurance Division [Member] | Topic 606 [Member]
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Insurance commissions		10,765	10,398	[1]	30,919	29,355	[1]
Other, net		2			3	5	[1]
Total Noninterest Income		$ 10,767	$ 10,398	[1]	$ 30,922	$ 29,360	[1]

[1] Trustmark elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation.

[2] 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.

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Defined Benefit and Other Postretirement Benefits - Additional Information (Details) - Trustmark Capital Accumulation Plan [Member] - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Years of service required to vest	3 years
Scenario Forecast [Member]
Defined Benefit Plan Disclosure [Line Items]
Trustmark's minimum required contribution to the Trustmark Corporation Pension Plan for Certain Employees of Acquired Financial Institutions		$ 243

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Defined Benefit and Other Postretirement Benefits - Net Periodic Benefit Cost for Plan and Continuing plan (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net periodic benefit cost [Abstract]
Recognized net loss due to defined benefit plan termination				$ 17,644
Trustmark Capital Accumulation Plan [Member] | Trustmark Corporation Pension Plan for Certain Employees of Acquired Financial Institutions [Member]
Net periodic benefit cost [Abstract]
Service cost	$ 69	$ 64	$ 208	190
Interest cost	83	102	249	1,394
Expected return on plan assets	(57)	(51)	(171)	(267)
Recognized net loss due to lump sum settlements	41	0	121	0
Recognized net loss due to defined benefit plan termination	0	0	0	17,644
Recognized net actuarial loss	143	142	428	1,272
Net periodic benefit cost	$ 279	$ 257	$ 835	$ 20,233

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Defined Benefit and Other Postretirement Benefits - Net Periodic Benefit Cost (Details) - Supplemental Retirement Plan [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net periodic benefit cost [Abstract]
Service cost	$ 29	$ 36	$ 87	$ 106
Interest cost	457	514	1,409	1,589
Amortization of prior service cost	63	63	188	188
Recognized net actuarial loss	218	214	664	651
Net periodic benefit cost	$ 767	$ 827	$ 2,348	$ 2,534

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Stock and Incentive Compensation Plans - Additional Information (Details)	9 Months Ended
	Sep. 30, 2018
Performance Based Award [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	3 years
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Return on average tangible equity, performance measure	100.00%
Total shareholder return, performance measure	100.00%
Time-Vested Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	3 years

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Stock and Incentive Compensation Plans - Summary of Stock Plan Activity (Details) - Stock and Incentive Compensation Plan [Member] - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Performance Based Award [Member]
Shares [Roll Forward]
Nonvested shares, beginning of period (in shares)	177,695	213,516
Granted (in shares)		51,174
Released from restriction (in shares)		(55,351)
Forfeited (in shares)		(31,644)
Nonvested shares, end of period (in shares)	177,695	177,695
Time-Vested Awards [Member]
Shares [Roll Forward]
Nonvested shares, beginning of period (in shares)	322,528	320,357
Granted (in shares)	1,500	118,325
Released from restriction (in shares)	(400)	(107,180)
Forfeited (in shares)	(764)	(8,638)
Nonvested shares, end of period (in shares)	322,864	322,864

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Stock and Incentive Compensation Plans - Compensation Expense for Awards Under Stock Plan (Details) - Stock and Incentive Compensation Plan [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total compensation expense	$ 1,158	$ 1,076	$ 3,022	$ 3,250
Performance Based Award [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total compensation expense	435	435	725	959
Time-Vested Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total compensation expense	$ 723	$ 641	$ 2,297	$ 2,291

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Contingencies - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($) Lawsuit	Sep. 30, 2017 USD ($)
Loss Contingencies [Line Items]
Unused commitments to extend credit	$ 3,666.0	$ 3,143.0
Pending or Threatened Litigation, Stanford Financial Group [Member]
Legal Proceedings [Abstract]
Lawsuits naming entity as defendant, number | Lawsuit	3
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Potential exposure to credit loss in the event of nonperformance	$ 102.9	105.6
Letters of credit, maturity term - maximum	3 years
Collateral held, fair value	$ 31.2	$ 30.2

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Earnings Per Share (EPS) - Weighted-Average Shares Used to Calculate Basic and Diluted EPS (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Basic shares (in shares)	67,621	67,742	67,729	67,722
Dilutive shares (in shares)	175	174	147	154
Diluted shares (in shares)	67,796	67,916	67,876	67,876

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Earnings Per Share (EPS) - Weighted-Average Antidilutive Stock Awards Excluded from Determining Diluted EPS (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Weighted-average antidilutive stock awards	8	6	87	72

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Statements of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Statement of cash flows specific transaction amounts [Abstract]
Income taxes paid	$ 11,629	$ 1,423
Interest expense paid on deposits and borrowings	46,506	28,266
Noncash transfers from loans to other real estate	$ 10,368	7,006
Transfer of long-term FHLB advances to short-term		250,038
Assets acquired in business combination		196,265
Liabilities acquired in business combination		$ 184,949

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Shareholders' Equity - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Mar. 11, 2016
Stockholders Equity [Line items]
Capital conservation buffer rate	1.875%		1.25%
Stock Repurchase Program
Stockholders Equity [Line items]
Amount of stock authorized for repurchase				$ 100.0
Repurchase shares of common stock	243,000	0
Repurchase shares of common stock, value	$ 7.9

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Shareholders' Equity - Table of Actual Regulatory Capital Amounts and Ratios (Details) - USD ($) $ in Thousands		Sep. 30, 2018	Dec. 31, 2017
Trustmark Corporation [Member] | Common Equity Tier 1 Capital (to Risk Weighted Assets) [Member]
Common Equity Tier One Risk Based Capital [Abstract]
Actual Regulatory Capital Amount		$ 1,302,859	$ 1,243,240
Actual Regulatory Capital Ratio		12.20%	11.77%
Minimum Regulatory Capital Required Ratio		6.375%	5.75%
Minimum Regulatory Provision to be Well-Capitalized Ratio	[1]
Trustmark Corporation [Member] | Tier 1 Capital (to Risk Weighted Assets) [Member]
Tier 1 Capital (to Risk Weighted Assets) [Abstract]
Actual Regulatory Capital Amount		$ 1,362,859	$ 1,303,238
Actual Regulatory Capital Ratio		12.76%	12.33%
Minimum Regulatory Capital Required Ratio		7.875%	7.25%
Minimum Regulatory Provision to be Well-Capitalized Ratio	[1]
Trustmark Corporation [Member] | Total Capital (to Risk Weighted Assets) [Member]
Total Capital (to Risk Weighted Assets) [Abstract]
Actual Regulatory Capital Amount		$ 1,453,447	$ 1,384,050
Actual Regulatory Capital Ratio		13.61%	13.10%
Minimum Regulatory Capital Required Ratio		9.875%	9.25%
Minimum Regulatory Provision to be Well-Capitalized Ratio	[1]
Trustmark Corporation [Member] | Tier 1 Leverage (to Average Assets) [Member]
Tier 1 Leverage (to Average Assets) [Abstract]
Actual Regulatory Capital Amount		$ 1,362,859	$ 1,303,238
Actual Regulatory Capital Ratio		10.41%	9.67%
Minimum Regulatory Capital Required Ratio		4.00%	4.00%
Minimum Regulatory Provision to be Well-Capitalized Ratio	[1]
Trustmark National Bank [Member] | Common Equity Tier 1 Capital (to Risk Weighted Assets) [Member]
Common Equity Tier One Risk Based Capital [Abstract]
Actual Regulatory Capital Amount		$ 1,344,029	$ 1,284,575
Actual Regulatory Capital Ratio		12.59%	12.16%
Minimum Regulatory Capital Required Ratio		6.375%	5.75%
Minimum Regulatory Provision to be Well-Capitalized Ratio		6.50%	6.50%
Trustmark National Bank [Member] | Tier 1 Capital (to Risk Weighted Assets) [Member]
Tier 1 Capital (to Risk Weighted Assets) [Abstract]
Actual Regulatory Capital Amount		$ 1,344,029	$ 1,284,575
Actual Regulatory Capital Ratio		12.59%	12.16%
Minimum Regulatory Capital Required Ratio		7.875%	7.25%
Minimum Regulatory Provision to be Well-Capitalized Ratio		8.00%	8.00%
Trustmark National Bank [Member] | Total Capital (to Risk Weighted Assets) [Member]
Total Capital (to Risk Weighted Assets) [Abstract]
Actual Regulatory Capital Amount		$ 1,434,617	$ 1,365,387
Actual Regulatory Capital Ratio		13.44%	12.93%
Minimum Regulatory Capital Required Ratio		9.875%	9.25%
Minimum Regulatory Provision to be Well-Capitalized Ratio		10.00%	10.00%
Trustmark National Bank [Member] | Tier 1 Leverage (to Average Assets) [Member]
Tier 1 Leverage (to Average Assets) [Abstract]
Actual Regulatory Capital Amount		$ 1,344,029	$ 1,284,575
Actual Regulatory Capital Ratio		10.29%	9.54%
Minimum Regulatory Capital Required Ratio		4.00%	4.00%
Minimum Regulatory Provision to be Well-Capitalized Ratio		5.00%	5.00%

[1] n/a

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Shareholders' Equity - Net Change in Components of Accumulated Other Comprehensive Income (Loss) and the Related Tax Effects (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Securities available for sale and transferred securities:
Net unrealized holding gains (losses) arising during the period, Before tax amount	$ (9,660)	$ (535)	$ (46,974)	$ 6,335
Reclassification adjustment for net (gains) losses realized in net income, Before tax amount	0	(14)	0	(15)
Change in net unrealized holding loss on securities transferred to held to maturity, Before tax amount	973	1,130	2,909	3,551
Total securities available for sale and transferred securities, Before tax amount	(8,687)	581	(44,065)	9,871
Pension and other postretirement benefit plans:
Net change in prior service costs, Before tax amount	63	63	188	188
Recognized net loss due to lump sum settlements, Before tax amount	41	0	121	0
Change in net actuarial loss, Before tax amount	361	356	1,092	1,923
Recognized net loss due to defined benefit plan termination, Before tax amount			0	16,991
Total pension and other postretirement benefit plans, Before tax amount	465	419	1,401	19,102
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective cash flow hedge derivatives, Before tax amount	52	53	611	(99)
Reclassification adjustment for (gain) loss realized in net income, Before tax amount	(104)	55	(209)	232
Total cash flow hedge derivatives, Before tax amount	(52)	108	402	133
Total other comprehensive income (loss), Before tax amount	(8,274)	1,108	(42,262)	29,106
Securities available for sale and transferred securities:
Net unrealized holding gains (losses) arising during the period, tax (expense) benefit	2,414	204	11,743	(2,423)
Reclassification adjustment for net (gains) losses realized in net income, tax (expense) benefit	0	(6)	0	(6)
Change in net unrealized holding loss on securities transferred to held to maturity, tax (expense) benefit	(243)	(432)	(727)	(1,358)
Total securities available for sale and transferred securities, tax (expense) benefit	2,171	(222)	11,016	(3,775)
Reclassification adjustment for net (gains) losses realized in net income, tax (expense) benefit	0	6	0	6
Pension and other postretirement benefit plans:
Net change in prior service costs, tax (expense) benefit	(16)	(24)	(48)	(72)
Recognized net loss due to lump sum settlements, tax (expense) benefit	(10)	0	(29)	0
Change in net actuarial loss, tax (expense) benefit	(90)	(137)	(273)	(736)
Recognized net loss due to defined benefit plan termination, tax (expense) benefit			0	(6,499)
Total pension and other postretirement benefit plans, tax (expense) benefit	(116)	(161)	(350)	(7,307)
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective cash flow hedge derivatives, tax (expense) benefit	(13)	(20)	(153)	38
Reclassification adjustment for (gain) loss realized in net income, tax (expense) benefit	25	(21)	52	(89)
Total cash flow hedge derivatives, tax (expense) benefit	12	(41)	(101)	(51)
Total other comprehensive income (loss), tax (expense) benefit	2,067	(424)	10,565	(11,133)
Net unrealized gains (losses) on available for sale securities and transferred securities:
Net unrealized holding gains (losses) arising during the period, net of tax amount	(7,246)	(331)	(35,231)	3,912
Reclassification adjustment for net (gains) losses realized in net income, net of tax amount	0	(8)	0	(9)
Change in net unrealized holding loss on securities transferred to held to maturity, net of tax amount	730	698	2,182	2,193
Total securities available for sale and transferred securities, net of tax amount	(6,516)	359	(33,049)	6,096
Pension and other postretirement benefit plans:
Net change in prior service costs, net of tax amount	47	39	140	116
Recognized net loss due to lump sum settlements, net of tax amount	31	0	92	0
Change in net actuarial loss, net of tax amount	271	219	819	1,187
Recognized net loss due to defined benefit plan termination, net of tax amount	0	0	0	10,492
Total pension and other postretirement benefit plans, net of tax amount	349	258	1,051	11,795
Cash flow hedge derivatives:
Change in accumulated gain (loss) on effective cash flow hedge derivatives, net of tax amount	39	33	458	(61)
Reclassification adjustment for (gain) loss realized in net income, net of tax amount	(79)	34	(157)	143
Total cash flow hedge derivatives, net of tax amount	(40)	67	301	82
Total other comprehensive income (loss), net of tax amount	$ (6,207)	$ 684	$ (31,697)	$ 17,973

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Shareholders' Equity - Changes in Balances of Component of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 1,599,604	$ 1,582,535	$ 1,599,604	$ 1,582,535	$ 1,571,701	$ 1,520,208
Other comprehensive income (loss) before reclassification			(32,591)	6,044
Amounts reclassified from accumulated other comprehensive loss			894	11,929
Total other comprehensive income (loss), net of tax amount	(6,207)	684	(31,697)	17,973
Reclassification of certain income tax effects related to the change in the federal statutory income tax rate under the Tax Cuts and Jobs Act of 2017 (Tax Reform Act)			(8,524)
Securities Available for Sale and Transferred Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(65,278)	(14,704)	(65,278)	(14,704)	(26,535)	(20,800)
Other comprehensive income (loss) before reclassification			(33,049)	6,105
Amounts reclassified from accumulated other comprehensive loss				(9)
Total other comprehensive income (loss), net of tax amount			(33,049)	6,096
Reclassification of certain income tax effects related to the change in the federal statutory income tax rate under the Tax Cuts and Jobs Act of 2017 (Tax Reform Act)			(5,694)
Defined Benefit Pension Items [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(15,307)	(13,185)	(15,307)	(13,185)	(13,468)	(24,980)
Amounts reclassified from accumulated other comprehensive loss			1,051	11,795
Total other comprehensive income (loss), net of tax amount			1,051	11,795
Reclassification of certain income tax effects related to the change in the federal statutory income tax rate under the Tax Cuts and Jobs Act of 2017 (Tax Reform Act)			(2,890)
Cash Flow Hedge Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	639	64	639	64	278	(18)
Other comprehensive income (loss) before reclassification			458	(61)
Amounts reclassified from accumulated other comprehensive loss			(157)	143
Total other comprehensive income (loss), net of tax amount			301	82
Reclassification of certain income tax effects related to the change in the federal statutory income tax rate under the Tax Cuts and Jobs Act of 2017 (Tax Reform Act)			60
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ (79,946)	$ (27,825)	$ (79,946)	$ (27,825)	$ (39,725)	$ (45,798)

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Fair Value - Financial Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 1,864,633	$ 2,238,635
Loans held for sale	182,664	180,512
Mortgage servicing rights	101,374	84,269	$ 81,477	$ 80,239
U.S. Government Agency Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	32,371	45,285
Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	57,264	79,229
Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,864,633	2,238,635
Loans held for sale	182,664	180,512
Mortgage servicing rights	101,374	84,269
Other assets - derivatives	3,287	1,516
Other liabilities - derivatives	4,311	2,678
Recurring Basis [Member] | U.S. Government Agency Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	32,371	45,285
Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	57,264	79,229
Recurring Basis [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,774,998	2,114,121
Level 1 [Member] | Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Loans held for sale	0	0
Mortgage servicing rights	0	0
Other assets - derivatives	(1,531)	(1,013)
Other liabilities - derivatives	1,070	616
Level 1 [Member] | Recurring Basis [Member] | U.S. Government Agency Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Level 1 [Member] | Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Level 1 [Member] | Recurring Basis [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Level 2 [Member] | Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,864,633	2,238,635
Loans held for sale	182,664	180,512
Mortgage servicing rights	0	0
Other assets - derivatives	3,925	1,629
Other liabilities - derivatives	3,241	2,062
Level 2 [Member] | Recurring Basis [Member] | U.S. Government Agency Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	32,371	45,285
Level 2 [Member] | Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	57,264	79,229
Level 2 [Member] | Recurring Basis [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,774,998	2,114,121
Level 3 [Member] | Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Loans held for sale	0	0
Mortgage servicing rights	101,374	84,269
Other assets - derivatives	893	900
Other liabilities - derivatives	0	0
Level 3 [Member] | Recurring Basis [Member] | U.S. Government Agency Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Level 3 [Member] | Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Level 3 [Member] | Recurring Basis [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 0	$ 0

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Fair Value - Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - Recurring Basis [Member] - Level 3 [Member] - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017
MSR [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		$ 84,269	$ 80,239
Total net (loss) gain included in Mortgage banking, net	[1]	4,857	(10,392)
Additions		12,248	11,630
Sales		0	0
Ending Balance		101,374	81,477
The amount of total gains (losses) for the period included in earnings that are attributable to the change in unrealized gains or losses still held, end of period		13,879	(2,218)
Other Assets - Derivatives [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance		900	1,001
Total net (loss) gain included in Mortgage banking, net	[1]	3,345	3,436
Additions		0	0
Sales		(3,352)	(3,431)
Ending Balance		893	1,006
The amount of total gains (losses) for the period included in earnings that are attributable to the change in unrealized gains or losses still held, end of period		$ 247	$ (1,483)

[1] Total net (loss) gain included in Mortgage banking, net relating to the MSR includes changes in fair value due to market changes and due to run-off.

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Fair Value - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Nonfinancial Assets and Liabilities [Abstract]
Outstanding balances in impaired loans	$ 52,500		$ 52,500		$ 48,900
Foreclosed assets re-measured after initial recognition			18,400	$ 22,000
Write-downs of allowance for foreclosed assets after initial recognition			1,900	2,600
Noninterest gain (loss) Mortgage banking, net for changes in fair value of LHFS	(1,300)	$ (202)	416,000	3,500
Interest earned on LHFS included in Interest and fees on LHFS and LHFI	1,500	$ 1,400	3,800	$ 3,700
GNMA optional repurchase loans	$ 47,800		$ 47,800		$ 48,200
Maximum [Member]
Nonfinancial Assets and Liabilities [Abstract]
Estimated fair value of financial instruments with immediate and shorter-term maturities			90 days

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Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities held to maturity	$ 943,883	$ 1,056,486
Net LHFI	8,658,156	8,493,234
Acquired loans	130,901	257,438
Deposits	10,956,910	10,577,512
Long-term FHLB advances	896	946
Junior subordinated debt securities	61,856	61,856
Level 2 [Member] | Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and short-term investments	433,471	336,383
Securities held to maturity	943,883	1,056,486
Deposits	10,956,910	10,577,512
Short-term liabilities	676,888	1,440,876
Long-term FHLB advances	896	946
Junior subordinated debt securities	61,856	61,856
Level 2 [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and short-term investments	433,471	336,383
Securities held to maturity	907,317	1,046,247
Deposits	10,953,348	10,577,858
Short-term liabilities	676,888	1,440,876
Long-term FHLB advances	831	946
Junior subordinated debt securities	53,815	45,773
Level 3 [Member] | Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net LHFI	8,658,156	8,493,234
Acquired loans	130,901	257,438
Level 3 [Member] | Estimate Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net LHFI	8,560,091	8,507,469
Acquired loans	$ 130,901	$ 257,438

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Fair Value - Fair Value and the Contractual Principal Outstanding of the LHFS (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair value and the contractual principal outstanding of the LHFS [Abstract]
Fair value of LHFS	$ 134,874	$ 132,300
LHFS contractual principal outstanding	134,598	129,347
Fair value less unpaid principal	$ 276	$ 2,953

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Derivative Financial Instruments - Additional Information (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018 USD ($) Contract	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) Contract	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($) Contract	Apr. 04, 2013 USD ($)
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Accumulated net, after tax gain included in accumulated other comprehensive loss	$ 52,000	$ 53,000	$ 611,000	$ (99,000)
Mortgage Servicing Rights Hedge [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total notional amount	252,000,000		252,000,000		$ 349,000,000
Net (negative) positive ineffectiveness on MSR fair value	72,000	$ (2,600,000)	$ 3,500,000	1,000,000
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Period for which cash flow hedges will be used to hedge quarterly interest payments			5 years
Derivative inception date			Dec. 31, 2014
Derivative maturity date			Dec. 31, 2019
Description of variable rate basis for derivative			three-month LIBOR
Ineffectiveness related to interest rate swap designated as a cash flow hedge			$ 0	$ 0
Accumulated net, after tax gain included in accumulated other comprehensive loss			$ 639,000		$ 278,000
The period over which OCI will be reclassified as interest expense			12 months
Estimated amount to be reclassified as a decrease to interest expense	$ 644,000		$ 644,000
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Junior Subordinated Debentures [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total notional amount						$ 60,000,000
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Three-month LIBOR [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Swap fixed interest rate to be paid	1.66%		1.66%
Derivatives not Designated as Hedging Instruments [Member] | Beneficiary [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Number of risk participation agreements | Contract	2		2		2
Aggregate notional amount of credit risk participation agreements	$ 13,200,000		$ 13,200,000		$ 13,700,000
Derivatives not Designated as Hedging Instruments [Member] | Guarantor [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Number of risk participation agreements | Contract	7		7		6
Aggregate notional amount of credit risk participation agreements	$ 40,300,000		$ 40,300,000		$ 37,100,000
Derivatives not Designated as Hedging Instruments [Member] | Interest Rate Swap [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total notional amount	410,200,000		410,200,000		351,900,000
Termination value of derivatives	0		0		80,000
Collateral Posted	0		0
Derivatives not Designated as Hedging Instruments [Member] | Forward Contracts [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet obligations	199,500,000		199,500,000		182,100,000
Valuation adjustment			930,000		(237,000)
Derivatives not Designated as Hedging Instruments [Member] | Interest Rate Lock Commitments [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet obligations	$ 102,900,000		102,900,000		83,000,000
Valuation adjustment			$ 893,000		$ 900,000

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Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative asset	$ 3,925	$ 1,626
Fair value of derivative liability	4,170	1,819
Derivatives in Hedging Relationships [Member] | Interest Rate Swap [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative asset	852	451
Derivatives not Designated as Hedging Instruments [Member] | Future Contracts [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative asset	(1,569)	(1,088)
Derivatives not Designated as Hedging Instruments [Member] | Credit Risk Participation Agreement [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative asset		3
Derivatives not Designated as Hedging Instruments [Member] | Credit Risk Participation Agreement [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative liability	1	6
Derivatives not Designated as Hedging Instruments [Member] | Forward Contracts [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative liability	(930)	237
Derivatives not Designated as Hedging Instruments [Member] | Interest Rate Swap [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative asset	3,073	1,175
Derivatives not Designated as Hedging Instruments [Member] | Interest Rate Swap [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative liability	4,170	1,819
Derivatives not Designated as Hedging Instruments [Member] | Exchange Traded Purchased Options [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative asset	38	75
Derivatives not Designated as Hedging Instruments [Member] | OTC Written Options (Rate Locks) [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative asset	893	900
Derivatives not Designated as Hedging Instruments [Member] | Exchange Traded Written Options [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative liability	$ 1,070	$ 616

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Derivative Financial Instruments - Effects of Derivative Instruments on Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivatives in Hedging Relationships [Member] | Accumulated Other Comprehensive Loss and Other Interest Expense [Member]
Derivatives, Fair Value [Line Items]
Amount of gain (loss) reclassified from accumulated other comprehensive loss and recognized in other interest expense	$ 104	$ (55)	$ 209	$ (232)
Derivatives not Designated as Hedging Instruments [Member] | Mortgage Banking, Net [Member]
Derivatives, Fair Value [Line Items]
Amount of gain (loss) recognized in mortgage banking, net	(1,302)	(466)	(9,243)	688
Derivatives not Designated as Hedging Instruments [Member] | Bank Card and Other Fees [Member]
Derivatives, Fair Value [Line Items]
Amount of gain (loss) recognized in bank card and other fees	$ (86)	$ (10)	$ (41)	$ (63)

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Derivative Financial Instruments - Schedule of Amount Included in Other Comprehensive Income (Loss) for Derivative Instruments Designated as Hedges of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivatives, Fair Value [Line Items]
Change in the accumulated gain (loss) on effective cash flow hedge derivatives	$ 39	$ 33	$ 458	$ (61)
Derivatives in Hedging Relationships [Member]
Derivatives, Fair Value [Line Items]
Change in the accumulated gain (loss) on effective cash flow hedge derivatives	$ 39	$ 33	$ 458	$ (61)

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Derivative Financial Instruments - Information about Financial Instruments that are Eligible for Offset in the Consolidated Balance Sheets (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Offsetting Derivative Assets
Gross Amounts of Recognized Assets, Offsetting of Derivative Assets	$ 3,925	$ 1,626
Gross Amounts Offset in the Statement of Financial Position, Offsetting of Derivative Assets	0	0
Net Amounts of Assets presented in the Statement of Financial Position, Offsetting of Derivative Assets	3,925	1,626
Financial Instruments, Gross Amounts Not Offset in the Statement of Financial Position, Offsetting of Derivative Assets	(84)	(311)
Cash Collateral Received, Gross Amounts Not Offset in the Statement of Financial Position, Offsetting of Derivative Assets	(950)	0
Net Amount, Offsetting of Derivative Assets	2,891	1,315
Offsetting Derivative Liabilities
Gross Amounts of Recognized Liabilities, Offsetting of Derivative Liabilities	4,170	1,819
Gross Amounts Offset in the Statement of Financial Position, Offsetting of Derivative Liabilities	0	0
Net Amounts of Liabilities presented in the Statement of Financial Position, Offsetting of Derivative Liabilities	4,170	1,819
Financial Instruments, Gross Amounts Not Offset in the Statement of Financial Position, Offsetting of Derivative Liabilities	(84)	(311)
Cash Collateral Posted, Gross Amounts Not Offset in the Statement of Financial Position, Offsetting of Derivative Liabilities		(100)
Net Amount, Offsetting of Derivative Liabilities	$ 4,086	$ 1,408

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Segment Information - Additional Information (Details)	9 Months Ended
	Sep. 30, 2018 Segment
Segment Reporting [Abstract]
Number of segments in which the business operates	3

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Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018	Sep. 30, 2017		Dec. 31, 2017
Segment Reporting Information [Line Items]
Net interest income	$ 106,983	$ 103,912		$ 314,240	$ 303,506
Provision for loan losses, net	8,206	2,019		15,043	3,533
Noninterest income	47,093	44,480	[1]	141,277	140,703	[1]
Noninterest expense	105,223	103,086		311,488	327,218
Income Before Income Taxes	40,647	43,287		128,986	113,458
Income taxes	4,394	8,708		16,090	23,596
Net Income	36,253	34,579		112,896	89,862
Selected Financial Information
Total assets	13,439,812	13,884,655		13,439,812	13,884,655		$ 13,797,953
Depreciation and amortization	9,978	10,052		29,512	28,781
General Banking [Member]
Segment Reporting Information [Line Items]
Net interest income	106,784	103,408		313,299	302,613
Provision for loan losses, net	8,206	2,019		15,043	3,533
Noninterest income	28,557	26,570	[1]	87,587	88,830	[1]
Noninterest expense	89,889	88,814		267,462	284,420
Income Before Income Taxes	37,246	39,145		118,381	103,490
Income taxes	3,536	7,130		13,430	19,772
Net Income	33,710	32,015		104,951	83,718
Selected Financial Information
Total assets	13,364,636	13,811,335		13,364,636	13,811,335
Depreciation and amortization	9,759	9,863		28,959	28,196
Wealth Management [Member]
Segment Reporting Information [Line Items]
Net interest income	134	434		771	718
Noninterest income	7,769	7,512	[1]	22,768	22,513	[1]
Noninterest expense	7,194	6,791		19,996	20,361
Income Before Income Taxes	709	1,155		3,543	2,870
Income taxes	177	441		886	1,098
Net Income	532	714		2,657	1,772
Selected Financial Information
Total assets	9,411	6,635		9,411	6,635
Depreciation and amortization	64	30		116	104
Insurance [Member]
Segment Reporting Information [Line Items]
Net interest income	65	70		170	175
Noninterest income	10,767	10,398	[1]	30,922	29,360	[1]
Noninterest expense	8,140	7,481		24,030	22,437
Income Before Income Taxes	2,692	2,987		7,062	7,098
Income taxes	681	1,137		1,774	2,726
Net Income	2,011	1,850		5,288	4,372
Selected Financial Information
Total assets	65,765	66,685		65,765	66,685
Depreciation and amortization	$ 155	$ 159		$ 437	$ 481

[1] Trustmark elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation.

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Accounting Policies Recently Adopted and Pending Accounting Pronouncements - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Corporate income tax rate			21.00%		35.00%
Stranded tax effects, reclassify from accumulated other comprehensive loss to retained earnings			$ 8,500,000		$ 8,500,000
Topic 606 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Percentage of revenues earned			23.00%
Cumulative adjustment	$ 0		$ 0
Topic 606 [Member] | Before adoption of Topic 606 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Allowance for doubtful accounts related to commission revenue subject to clawback provisions	0		0
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Total outstanding operating lease obligation					$ 67,900,000
Percentage of total outstanding operating lease obligation of total assets					0.50%
Other Expense [Member] | Accounting Standard Update 2017-07 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Net periodic benefit cost	$ 885,000	$ 966,000	$ 2,700,000	$ 4,800,000