News Release

Trustmark Corporation Announces 2008 Financial Results

and Declares $0.23 Quarterly Cash Dividend

Jackson, Miss. – January 27, 2009 – Trustmark Corporation (NASDAQ:TRMK) announced net income available to common shareholders of $24.0 million in the fourth quarter of 2008, which represented basic earnings per common share of $0.42.  Trustmark’s fourth quarter 2008 net income produced a return on average tangible common equity 15.10% and a return on average assets of 1.07%.  For the year ended December 31, 2008, Trustmark’s net income available to common shareholders totaled $91.1 million, which represented basic earnings per common share of $1.59.  Trustmark’s performance during 2008 resulted in a return on average tangible common equity of 14.88% and return on average assets of 1.01%.  Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per common share.  The dividend is payable March 15, 2009, to shareholders of record on March 1, 2009.

Richard G. Hickson, Chairman and CEO, stated, “We are pleased with our financial performance, particularly in light of the challenging economic environment, as earnings during the fourth quarter continue to reflect the core operating strength of Trustmark.  Results for the quarter include enhanced capital strength and continued disciplined expense management.  While the magnitude and duration of the economic slowdown remains unknown, Trustmark’s strong capital position, solid balance sheet and diversified financial services businesses are well positioned to face the challenges confronting the banking industry.”

Credit Quality

·   Nonperforming assets increased $14.9 million, representing 2.18% of total loans and other real estate

·   Net charge-offs totaled $12.7 million, or 0.73% of average loans

·   Provision for loan losses totaled $16.7 million

During the fourth quarter, Trustmark’s nonaccrual loans increased $8.8 million primarily due to real estate loans in Florida and one in Mississippi which were reserved for or written-down to net realizable value.  Trustmark continued to devote significant resources to managing credit risks resulting from the slowdown in residential real estate.  Nonaccrual loans in Trustmark’s Tennessee and Texas markets decreased when compared to the prior quarter.  Total other real estate increased $6.1 million during the quarter, principally due to foreclosures in Florida.

Collectively, Trustmark’s nonperforming assets increased $14.9 million during the quarter to total $152.6 million, or 2.18% of total loans and other real estate, as of December 31, 2008.  Net charge-offs were $12.7 million in the fourth quarter of 2008 while the provision for loan losses totaled $16.7 million.  Allocation of Trustmark’s $94.9 million allowance for loan losses represented 1.79% of commercial loans and 0.72% of consumer and home mortgage loans, resulting in an allowance to total loans of 1.41%.

Enhanced Capital Strength

·   Internally generated tangible common equity increased $58.1 million from prior year to $658.4 million

·   Issued $215 million in Senior Preferred stock to U.S. Treasury as part of the government’s Capital Purchase Program

·   Total risk-based capital expanded to 14.95%

The current economic and financial environments are significantly changing the landscape of the banking industry.  In an effort to position Trustmark for continued success in this challenging environment, the Corporation issued $215 million in Senior Preferred stock to the U.S. Treasury as part of the government’s voluntary initiative for financial institutions to support the economy by increasing financing to businesses and consumers.  This cost-effective capital will support Trustmark’s growth and expansion opportunities, reinforce our strong capital position, and advance the U.S. Treasury’s efforts to facilitate additional lending in our markets.

Net Interest Margin

·   Average earning assets increased due to expanded securities portfolio

·   Optimized funding costs as higher rate deposits were replaced with lower cost short-term borrowings

Average loans remained unchanged during the fourth quarter relative to the prior period while average investment securities increased $387.5 million as a positively sloped yield curve created an opportunity to enhance future net interest income.  Declining funding costs more than offset lower yields on earning assets, resulting in a 19 basis point increase in the net interest margin to 4.20%.  This expansion in the net interest margin is attributable to an increased level of fixed rate securities primarily funded by shorter, floating rate liabilities as well as to the abnormal spread between LIBOR and the overnight Federal Funds rate during the quarter that has since dissipated.

Disciplined Expense Management

·   Noninterest expense declined 1.63% relative to prior quarter

·   Efficiency ratio improved to 55.86%

In the fourth quarter of 2008, noninterest expense totaled $71.5 million, a decrease of $1.2 million relative to the prior quarter.  Ongoing human capital management initiatives and continued awareness of expense management across the organization are reflected in the Corporation’s efficiency ratio of 55.86% during the fourth quarter.  Trustmark remains committed to identifying additional reengineering and efficiency opportunities to enhance shareholder value.

ADDITIONAL INFORMATION

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 28 at 10:00 a.m. Central Time to discuss the Corporation's financial results. Interested parties may listen to the conference call by dialing (877) 627-6580, passcode 9363244 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, February 4, 2009 in archived format at the same web address or by calling (888) 203-1112, passcode 9363244.

Trustmark is a financial services company providing banking and financial solutions through over 150 offices and 2,600 associates in Florida, Mississippi, Tennessee and Texas.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document 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 the extent and duration of the current volatility in the credit and financial markets, 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 non-interest 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 and monetary and other governmental actions designed to address the level and volatility of interest rates and the volatility of securities, currency and other 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 effect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of Trustmark’s borrowers, changes in Trustmark’s ability to control expenses, changes in Trustmark’s compensation and benefit plans, greater than expected costs or difficulties related to the integration of new products and lines of business, natural disasters, acts of war or terrorism and other risks described in Trustmark’s filings with the Securities and Exchange Commission.

Although Management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Trustmark undertakes no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

Trustmark Contacts:
Investors:	Louis E. Greer	Joseph Rein
	Treasurer and	First Vice President
	Principal Financial Officer	601-208-6898
	601-208-2310
Media:	Melanie A. Morgan
	Senior Vice President
	601-208-2979

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION DECEMBER 31, 2008 ($ in thousands except per share data) (unaudited)

										Linked Quarter						Year over Year
QUARTERLY AVERAGE BALANCES	12/31/2008			9/30/2008			12/31/2007			$ Change			% Change			$ Change			% Change
Securities AFS-taxable	$	1,226,843		$	822,995		$	435,438		$	403,848			49.1	%	$	791,405			n/m
Securities AFS-nontaxable		40,708			39,886			46,898			822			2.1	%		(6,190	)		-13.2	%
Securities HTM-taxable		169,958			184,001			192,878			(14,043	)		-7.6	%		(22,920	)		-11.9	%
Securities HTM-nontaxable		71,843			74,937			82,963			(3,094	)		-4.1	%		(11,120	)		-13.4	%
Total securities		1,509,352			1,121,819			758,177			387,533			34.5	%		751,175			99.1	%
Loans (including loans held for sale)		6,908,296			6,927,270			7,149,243			(18,974	)		-0.3	%		(240,947	)		-3.4	%
Fed funds sold and rev repos		22,871			17,401			25,960			5,470			31.4	%		(3,089	)		-11.9	%
Other earning assets		49,197			37,323			41,368			11,874			31.8	%		7,829			18.9	%
Total earning assets		8,489,716			8,103,813			7,974,748			385,903			4.8	%		514,968			6.5	%
Allowance for loan losses		(91,802	)		(88,643	)		(73,659	)		(3,159	)		3.6	%		(18,143	)		24.6	%
Cash and due from banks		223,774			246,515			257,319			(22,741	)		-9.2	%		(33,545	)		-13.0	%
Other assets		801,890			810,449			765,939			(8,559	)		-1.1	%		35,951			4.7	%
Total assets	$	9,423,578		$	9,072,134		$	8,924,347		$	351,444			3.9	%	$	499,231			5.6	%
Interest-bearing demand deposits	$	1,149,071		$	1,222,087		$	1,160,823		$	(73,016	)		-6.0	%	$	(11,752	)		-1.0	%
Savings deposits		1,709,670			1,774,188			1,608,125			(64,518	)		-3.6	%		101,545			6.3	%
Time deposits less than $100,000		1,478,753			1,532,630			1,570,687			(53,877	)		-3.5	%		(91,934	)		-5.9	%
Time deposits of $100,000 or more		1,045,377			1,108,677			1,058,165			(63,300	)		-5.7	%		(12,788	)		-1.2	%
Total interest-bearing deposits		5,382,871			5,637,582			5,397,800			(254,711	)		-4.5	%		(14,929	)		-0.3	%
Fed funds purchased and repos		809,822			659,312			517,424			150,510			22.8	%		292,398			56.5	%
Short-term borrowings		494,928			156,880			413,676			338,048			n/m			81,252			19.6	%
Subordinated notes		49,736			49,728			49,703			8			0.0	%		33			0.1	%
Junior subordinated debt securities		70,104			70,104			70,104			-			0.0	%		-			0.0	%
Total interest-bearing liabilities		6,807,461			6,573,606			6,448,707			233,855			3.6	%		358,754			5.6	%
Noninterest-bearing deposits		1,433,361			1,415,402			1,419,364			17,959			1.3	%		13,997			1.0	%
Other liabilities		126,704			136,229			137,197			(9,525	)		-7.0	%		(10,493	)		-7.6	%
Total liabilities		8,367,526			8,125,237			8,005,268			242,289			3.0	%		362,258			4.5	%
Preferred equity		91,385			-			-			91,385			n/m			91,385			n/m
Common equity		964,667			946,897			919,079			17,770			1.9	%		45,588			5.0	%
Total shareholders' equity		1,056,052			946,897			919,079			109,155			11.5	%		136,973			14.9	%
Total liabilities and equity	$	9,423,578		$	9,072,134		$	8,924,347		$	351,444			3.9	%	$	499,231			5.6	%
										Linked Quarter						Year over Year
PERIOD END BALANCES	12/31/2008			9/30/2008			12/31/2007			$ Change			% Change			$ Change			% Change
Cash and due from banks	$	257,930		$	235,016		$	292,983		$	22,914			9.7	%	$	(35,053	)		-12.0	%
Fed funds sold and rev repos		23,401			14,782			17,997			8,619			58.3	%		5,404			30.0	%
Securities available for sale		1,542,841			907,629			442,345			635,212			70.0	%		1,100,496			n/m
Securities held to maturity		259,629			256,323			275,096			3,306			1.3	%		(15,467	)		-5.6	%
Loans held for sale		238,265			154,162			147,508			84,103			54.6	%		90,757			61.5	%
Loans		6,722,403			6,740,730			7,040,792			(18,327	)		-0.3	%		(318,389	)		-4.5	%
Allowance for loan losses		(94,922	)		(90,888	)		(79,851	)		(4,034	)		4.4	%		(15,071	)		18.9	%
Net Loans		6,627,481			6,649,842			6,960,941			(22,361	)		-0.3	%		(333,460	)		-4.8	%
Premises and equipment, net		156,811			156,298			151,680			513			0.3	%		5,131			3.4	%
Mortgage servicing rights		42,882			78,550			67,192			(35,668	)		-45.4	%		(24,310	)		-36.2	%
Goodwill		291,104			291,145			291,177			(41	)		0.0	%		(73	)		0.0	%
Identifiable intangible assets		23,821			24,887			28,102			(1,066	)		-4.3	%		(4,281	)		-15.2	%
Other assets		326,744			317,639			291,781			9,105			2.9	%		34,963			12.0	%
Total assets	$	9,790,909		$	9,086,273		$	8,966,802		$	704,636			7.8	%	$	824,107			9.2	%
Deposits:
Noninterest-bearing	$	1,496,166		$	1,526,374		$	1,477,171		$	(30,208	)		-2.0	%	$	18,995			1.3	%
Interest-bearing		5,327,704			5,411,304			5,392,101			(83,600	)		-1.5	%		(64,397	)		-1.2	%
Total deposits		6,823,870			6,937,678			6,869,272			(113,808	)		-1.6	%		(45,402	)		-0.7	%
Fed funds purchased and repos		811,129			592,818			460,763			218,311			36.8	%		350,366			76.0	%
Short-term borrowings		730,958			369,037			474,354			361,921			98.1	%		256,604			54.1	%
Subordinated notes		49,741			49,733			49,709			8			0.0	%		32			0.1	%
Junior subordinated debt securities		70,104			70,104			70,104			-			0.0	%		-			0.0	%
Other liabilities		126,641			117,905			122,964			8,736			7.4	%		3,677			3.0	%
Total liabilities		8,612,443			8,137,275			8,047,166			475,168			5.8	%		565,277			7.0	%
Preferred Stock		205,126			-			-			205,126			n/m			205,126			n/m
Common stock		11,944			11,944			11,933			-			0.0	%		11			0.1	%
Capital surplus		139,471			128,617			124,161			10,854			8.4	%		15,310			12.3	%
Retained earnings		836,642			824,768			797,993			11,874			1.4	%		38,649			4.8	%
Accum other comprehensive
loss, net of tax		(14,717	)		(16,331	)		(14,451	)		1,614			-9.9	%		(266	)		1.8	%
Total shareholders' equity		1,178,466			948,998			919,636			229,468			24.2	%		258,830			28.1	%
Total liabilities and equity	$	9,790,909		$	9,086,273		$	8,966,802		$	704,636			7.8	%	$	824,107			9.2	%

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

See Notes to Consolidated Financials

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION DECEMBER 31, 2008 ($ in thousands except per share data) (unaudited)

	Quarter Ended									Linked Quarter						Year over Year
INCOME STATEMENTS	12/31/2008			9/30/2008			12/31/2007			$ Change			% Change			$ Change			% Change
Interest and fees on loans-FTE	$	101,694		$	105,706		$	133,088		$	(4,012	)		-3.8	%	$	(31,394	)		-23.6	%
Interest on securities-taxable		17,108			12,117			6,505			4,991			41.2	%		10,603			n/m
Interest on securities-tax exempt-FTE		1,891			1,946			2,352			(55	)		-2.8	%		(461	)		-19.6	%
Interest on fed funds sold and rev repos		57			98			317			(41	)		-41.8	%		(260	)		-82.0	%
Other interest income		368			407			501			(39	)		-9.6	%		(133	)		-26.5	%
Total interest income-FTE		121,118			120,274			142,763			844			0.7	%		(21,645	)		-15.2	%
Interest on deposits		26,818			32,860			47,911			(6,042	)		-18.4	%		(21,093	)		-44.0	%
Interest on fed funds pch and repos		1,178			3,123			5,499			(1,945	)		-62.3	%		(4,321	)		-78.6	%
Other interest expense		3,399			2,653			7,055			746			28.1	%		(3,656	)		-51.8	%
Total interest expense		31,395			38,636			60,465			(7,241	)		-18.7	%		(29,070	)		-48.1	%
Net interest income-FTE		89,723			81,638			82,298			8,085			9.9	%		7,425			9.0	%
Provision for loan losses		16,684			14,473			17,001			2,211			15.3	%		(317	)		-1.9	%
Net interest income after provision-FTE		73,039			67,165			65,297			5,874			8.7	%		7,742			11.9	%
Service charges on deposit accounts		14,044			13,886			13,908			158			1.1	%		136			1.0	%
Insurance commissions		6,783			9,007			7,630			(2,224	)		-24.7	%		(847	)		-11.1	%
Wealth management		6,583			6,788			6,969			(205	)		-3.0	%		(386	)		-5.5	%
General banking - other		5,576			5,813			6,177			(237	)		-4.1	%		(601	)		-9.7	%
Mortgage banking, net		4,393			4,323			4,967			70			1.6	%		(574	)		-11.6	%
Other, net		935			2,131			2,604			(1,196	)		-56.1	%		(1,669	)		-64.1	%
Nonint inc-excl sec gains, net		38,314			41,948			42,255			(3,634	)		-8.7	%		(3,941	)		-9.3	%
Security gains, net		12			2			2			10			n/m			10			n/m
Total noninterest income		38,326			41,950			42,257			(3,624	)		-8.6	%		(3,931	)		-9.3	%
Salaries and employee benefits		41,923			42,859			42,446			(936	)		-2.2	%		(523	)		-1.2	%
Services and fees		9,638			9,785			9,375			(147	)		-1.5	%		263			2.8	%
Net occupancy-premises		4,704			5,153			4,716			(449	)		-8.7	%		(12	)		-0.3	%
Equipment expense		4,183			4,231			4,165			(48	)		-1.1	%		18			0.4	%
Other expense		11,097			10,706			9,020			391			3.7	%		2,077			23.0	%
Total noninterest expense		71,545			72,734			69,722			(1,189	)		-1.6	%		1,823			2.6	%
Income before income taxes and tax eq adj		39,820			36,381			37,832			3,439			9.5	%		1,988			5.3	%
Tax equivalent adjustment		2,326			2,242			2,375			84			3.8	%		(49	)		-2.1	%
Income before income taxes		37,494			34,139			35,457			3,355			9.8	%		2,037			5.7	%
Income taxes		12,162			10,785			11,628			1,377			12.8	%		534			4.6	%
Net income		25,332			23,354			23,829			1,978			8.5	%		1,503			6.3	%
Preferred stock dividends		1,165			-			-			1,165			n/m			1,165			n/m
Accretion of preferred stock discount		188			-			-			188			n/m			188			n/m
Net income available to common shareholders	$	23,979		$	23,354		$	23,829		$	625			2.7	%	$	150			0.6	%
Per common share data
Earnings per share - basic	$	0.42		$	0.41		$	0.42		$	0.01			2.4	%	$	-			0.0	%
Earnings per share - diluted	$	0.42		$	0.41		$	0.42		$	0.01			2.4	%	$	-			0.0	%
Dividends per share	$	0.23		$	0.23		$	0.23		$	-			0.0	%	$	-			0.0	%
Weighted average common shares outstanding
Basic		57,324,710			57,298,710			57,272,408
Diluted		57,375,590			57,337,342			57,341,472
Period end common shares outstanding		57,324,737			57,324,627			57,272,408
OTHER FINANCIAL DATA
Return on common equity		9.89	%		9.81	%		10.29	%
Return on average tangible common equity		15.10	%		15.16	%		16.28	%
Return on equity		9.54	%		9.81	%		10.29	%
Return on assets		1.07	%		1.02	%		1.06	%
Interest margin - Yield - FTE		5.68	%		5.90	%		6.94	%
Interest margin - Cost		1.47	%		1.90	%		3.01	%
Net interest margin - FTE		4.20	%		4.01	%		3.93	%
Efficiency ratio		55.86	%		58.85	%		56.80	%
Full-time equivalent employees		2,607			2,623			2,612
COMMON STOCK PERFORMANCE
Market value-Close	$	21.59		$	20.74		$	25.36
Common book value	$	16.98		$	16.55		$	16.06
Tangible common book value	$	11.49		$	11.04		$	10.48

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

See Notes to Consolidated Financials 

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION DECEMBER 31, 2008 ($ in thousands except per share data) (unaudited)

	Quarter Ended									Linked Quarter						Year over Year
NONPERFORMING ASSETS	12/31/2008			9/30/2008			12/31/2007			$ Change			% Change			$ Change				% Change
Nonaccrual loans
Florida	$	75,092		$	71,125		$	43,787		$	3,967			5.6	%	$	31,305				71.5	%
Mississippi (1)		18,703			12,727			13,723			5,976			47.0	%		4,980				36.3	%
Tennessee (2)		3,638			4,012			4,431			(374	)		-9.3	%		(793	)			-17.9	%
Texas		16,605			17,418			3,232			(813	)		-4.7	%		13,373				n/m
Total nonaccrual loans		114,038			105,282			65,173			8,756			8.3	%		48,865				75.0	%
Other real estate
Florida		21,265			18,265			995			3,000			16.4	%		20,270				n/m
Mississippi (1)		6,113			6,062			1,123			51			0.8	%		4,990				n/m
Tennessee (2)		8,862			7,924			6,084			938			11.8	%		2,778				45.7	%
Texas		2,326			214			146			2,112			n/m			2,180				n/m
Total other real estate		38,566			32,465			8,348			6,101			18.8	%		30,218				n/m
Total nonperforming assets	$	152,604		$	137,747		$	73,521		$	14,857			10.8	%	$	79,083				n/m
LOANS PAST DUE OVER 90 DAYS
Loans	$	5,139		$	3,622		$	4,853		$	1,517			41.9	%	$	286				5.9	%
Loans HFS-Guaranteed GNMA serviced loans		18,095			20,332			11,847			(2,237	)		-11.0	%		6,248				52.7	%
Total loans past due over 90 days	$	23,234		$	23,954		$	16,700		$	(720	)		-3.0	%	$	6,534				39.1	%
	Quarter Ended									Linked Quarter						Year over Year
ALLOWANCE FOR LOAN LOSSES	12/31/2008			9/30/2008			12/31/2007			$ Change			% Change			$ Change				% Change
Beginning Balance	$	90,888		$	86,576		$	72,368		$	4,312			5.0	%	$	18,520				25.6	%
Provision for loan losses		16,684			14,473			17,001			2,211			15.3	%		(317	)			-1.9	%
Charge-offs		(15,039	)		(12,732	)		(11,904	)		(2,307	)		18.1	%		(3,135	)			26.3	%
Recoveries		2,389			2,571			2,386			(182	)		-7.1	%		3				0.1	%
Net charge-offs		(12,650	)		(10,161	)		(9,518	)		(2,489	)		24.5	%		(3,132	)			32.9	%
Ending Balance	$	94,922		$	90,888		$	79,851		$	4,034			4.4	%	$	15,071				18.9	%
PROVISION FOR LOAN LOSSES																			`
Florida	$	6,491		$	3,167		$	12,523		$	3,324			n/m		$	(6,032	)			-48.2	%
Mississippi (1)		5,756			8,476			2,724			(2,720	)		-32.1	%		3,032				n/m
Tennessee (2)		1,461			27			1,056			1,434			n/m			405				38.4	%
Texas		2,976			2,803			698			173			6.2	%		2,278				n/m
Total provision for loan losses	$	16,684		$	14,473		$	17,001		$	2,211			15.3	%	$	(317	)			-1.9	%
NET CHARGE-OFFS
Florida	$	7,160		$	3,779		$	3,665		$	3,381			89.5	%	$	3,495				95.4	%
Mississippi (1)		4,387			4,515			3,999			(128	)		-2.8	%		388				9.7	%
Tennessee (2)		816			1,291			1,284			(475	)		-36.8	%		(468	)			-36.4	%
Texas		287			576			570			(289	)		-50.2	%		(283	)			-49.6	%
Total net charge-offs	$	12,650		$	10,161		$	9,518		$	2,489			24.5	%	$	3,132				32.9	%
CREDIT QUALITY RATIOS
Net charge offs/average loans		0.73	%		0.58	%		0.53	%
Provision for loan losses/average loans		0.96	%		0.83	%		0.94	%
Nonperforming loans/total loans (incl LHFS)		1.64	%		1.53	%		0.91	%
Nonperforming assets/total loans (incl LHFS)		2.19	%		2.00	%		1.02	%
Nonperforming assets/total loans (incl LHFS) +ORE		2.18	%		1.99	%		1.02	%
ALL/total loans (excl LHFS)		1.41	%		1.35	%		1.13	%
ALL-commercial/total commercial loans		1.79	%		1.76	%		1.48	%
ALL-consumer/total consumer and home mortgage loans		0.72	%		0.64	%		0.59	%
ALL/nonperforming loans		83.24	%		86.33	%		122.52	%
CAPITAL RATIOS
Total equity/total assets		12.04	%		10.44	%		10.26	%
Common equity/total assets		9.94	%		10.44	%		10.26	%
Tangible equity/tangible assets		9.11	%		7.22	%		6.94	%
Tangible common equity/tangible assets		6.95	%		7.22	%		6.94	%
Tier 1 leverage ratio		10.42	%		8.11	%		7.86	%
Tier 1 risk-based capital ratio		13.01	%		9.86	%		9.17	%
Total risk-based capital ratio		14.95	%		11.80	%		10.93	%
(1) - Mississippi includes Central and Southern Mississippi Regions
(2) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions
n/m - percentage changes greater than +/- 100% are considered not meaningful

  See Notes to Consolidated Financials

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION DECEMBER 31, 2008 ($ in thousands except per share data) (unaudited)

	Quarter Ended															Year Ended
QUARTERLY AVERAGE BALANCES	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007			12/31/2008			12/31/2007
Securities AFS-taxable	$	1,226,843		$	822,995		$	769,790		$	353,079		$	435,438		$	794,443		$	573,940
Securities AFS-nontaxable		40,708			39,886			35,869			36,241			46,898			38,188			50,763
Securities HTM-taxable		169,958			184,001			186,047			189,604			192,878			182,373			195,468
Securities HTM-nontaxable		71,843			74,937			76,940			81,559			82,963			76,304			86,030
Total securities		1,509,352			1,121,819			1,068,646			660,483			758,177			1,091,308			906,201
Loans (including loans held for sale)		6,908,296			6,927,270			7,080,495			7,177,233			7,149,243			7,022,747			6,893,402
Fed funds sold and rev repos		22,871			17,401			30,567			22,921			25,960			23,422			40,850
Other earning assets		49,197			37,323			41,481			36,958			41,368			41,251			37,133
Total earning assets		8,489,716			8,103,813			8,221,189			7,897,595			7,974,748			8,178,728			7,877,586
Allowance for loan losses		(91,802	)		(88,643	)		(82,962	)		(80,998	)		(73,659	)		(86,124	)		(72,365	)
Cash and due from banks		223,774			246,515			253,545			259,392			257,319			245,748			287,113
Other assets		801,890			810,449			782,986			775,722			765,939			792,835			753,503
Total assets	$	9,423,578		$	9,072,134		$	9,174,758		$	8,851,711		$	8,924,347		$	9,131,187		$	8,845,837
Interest-bearing demand deposits	$	1,149,071		$	1,222,087		$	1,258,281		$	1,233,892		$	1,160,823		$	1,215,668		$	1,186,683
Savings deposits		1,709,670			1,774,188			1,867,438			1,755,048			1,608,125			1,776,397			1,708,378
Time deposits less than $100,000		1,478,753			1,532,630			1,568,802			1,577,753			1,570,687			1,539,299			1,593,945
Time deposits of $100,000 or more		1,045,377			1,108,677			1,051,716			1,030,527			1,058,165			1,059,173			1,031,382
Total interest-bearing deposits		5,382,871			5,637,582			5,746,237			5,597,220			5,397,800			5,590,537			5,520,388
Fed funds purchased and repos		809,822			659,312			618,227			417,338			517,424			626,767			447,438
Short-term borrowings		494,928			156,880			202,778			252,234			413,676			276,974			269,102
Subordinated notes		49,736			49,728			49,720			49,712			49,703			49,724			49,692
Junior subordinated debt securities		70,104			70,104			70,104			70,104			70,104			70,104			70,104
Total interest-bearing liabilities		6,807,461			6,573,606			6,687,066			6,386,608			6,448,707			6,614,106			6,356,724
Noninterest-bearing deposits		1,433,361			1,415,402			1,409,371			1,390,843			1,419,364			1,412,312			1,455,494
Other liabilities		126,704			136,229			134,237			141,741			137,197			134,708			130,244
Total liabilities		8,367,526			8,125,237			8,230,674			7,919,192			8,005,268			8,161,126			7,942,462
Preferred equity		91,385			-			-			-			-			22,971			-
Common equity		964,667			946,897			944,084			932,519			919,079			947,090			903,375
Total shareholders' equity		1,056,052			946,897			944,084			932,519			919,079			970,061			903,375
Total liabilities and equity	$	9,423,578		$	9,072,134		$	9,174,758		$	8,851,711		$	8,924,347		$	9,131,187		$	8,845,837
PERIOD END BALANCES	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
Cash and due from banks	$	257,930		$	235,016		$	296,628		$	290,200		$	292,983
Fed funds sold and rev repos		23,401			14,782			23,901			16,022			17,997
Securities available for sale		1,542,841			907,629			908,949			585,746			442,345
Securities held to maturity		259,629			256,323			260,741			267,315			275,096
Loans held for sale		238,265			154,162			184,858			198,245			147,508
Loans		6,722,403			6,740,730			6,859,375			7,012,034			7,040,792
Allowance for loan losses		(94,922	)		(90,888	)		(86,576	)		(81,818	)		(79,851	)
Net Loans		6,627,481			6,649,842			6,772,799			6,930,216			6,960,941
Premises and equipment, net		156,811			156,298			154,026			151,469			151,680
Mortgage servicing rights		42,882			78,550			76,209			59,047			67,192
Goodwill		291,104			291,145			291,145			291,210			291,177
Identifiable intangible assets		23,821			24,887			25,958			27,030			28,102
Other assets		326,744			317,639			319,835			280,653			291,781
Total assets	$	9,790,909		$	9,086,273		$	9,315,049		$	9,097,153		$	8,966,802
Deposits:
Noninterest-bearing	$	1,496,166		$	1,526,374		$	1,443,553		$	1,475,976		$	1,477,171
Interest-bearing		5,327,704			5,411,304			5,680,130			5,868,359			5,392,101
Total deposits		6,823,870			6,937,678			7,123,683			7,344,335			6,869,272
Fed funds purchased and repos		811,129			592,818			748,137			433,431			460,763
Short-term borrowings		730,958			369,037			260,812			93,453			474,354
Subordinated notes		49,741			49,733			49,725			49,717			49,709
Junior subordinated debt securities		70,104			70,104			70,104			70,104			70,104
Other liabilities		126,641			117,905			126,703			168,772			122,964
Total liabilities		8,612,443			8,137,275			8,379,164			8,159,812			8,047,166
Preferred Stock		205,126			-			-			-			-
Common stock		11,944			11,944			11,938			11,938			11,933
Capital surplus		139,471			128,617			126,881			126,003			124,161
Retained earnings		836,642			824,768			814,674			810,369			797,993
Accum other comprehensive
loss, net of tax		(14,717	)		(16,331	)		(17,608	)		(10,969	)		(14,451	)
Total shareholders' equity		1,178,466			948,998			935,885			937,341			919,636
Total liabilities and equity	$	9,790,909		$	9,086,273		$	9,315,049		$	9,097,153		$	8,966,802

See Notes to Consolidated Financials 

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION DECEMBER 31, 2008 ($ in thousands except per share data) (unaudited)

	Quarter Ended															Year Ended
INCOME STATEMENTS	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007			12/31/2008			12/31/2007
Interest and fees on loans-FTE	$	101,694		$	105,706		$	109,023		$	119,641		$	133,088		$	436,064		$	506,671
Interest on securities-taxable		17,108			12,117			11,079			5,857			6,505			46,161			31,784
Interest on securities-tax exempt-FTE		1,891			1,946			1,943			2,086			2,352			7,866			9,943
Interest on fed funds sold and rev repos		57			98			168			179			317			502			2,147
Other interest income		368			407			475			572			501			1,822			2,116
Total interest income-FTE		121,118			120,274			122,688			128,335			142,763			492,415			552,661
Interest on deposits		26,818			32,860			36,881			43,363			47,911			139,922			200,375
Interest on fed funds pch and repos		1,178			3,123			3,019			3,073			5,499			10,393			20,224
Other interest expense		3,399			2,653			2,923			4,829			7,055			13,804			21,761
Total interest expense		31,395			38,636			42,823			51,265			60,465			164,119			242,360
Net interest income-FTE		89,723			81,638			79,865			77,070			82,298			328,296			310,301
Provision for loan losses		16,684			14,473			31,012			14,243			17,001			76,412			23,784
Net interest income after provision-FTE		73,039			67,165			48,853			62,827			65,297			251,884			286,517
Service charges on deposit accounts		14,044			13,886			13,223			12,564			13,908			53,717			54,179
Insurance commissions		6,783			9,007			8,394			8,256			7,630			32,440			35,286
Wealth management		6,583			6,788			7,031			7,198			6,969			27,600			25,755
General banking - other		5,576			5,813			6,053			5,788			6,177			23,230			24,876
Mortgage banking, net		4,393			4,323			6,708			11,056			4,967			26,480			12,024
Other, net		935			2,131			6,999			3,221			2,604			13,286			10,215
Nonint inc-excl sec gains, net		38,314			41,948			48,408			48,083			42,255			176,753			162,335
Security gains, net		12			2			58			433			2			505			112
Total noninterest income		38,326			41,950			48,466			48,516			42,257			177,258			162,447
Salaries and employee benefits		41,923			42,859			42,771			43,584			42,446			171,137			170,722
Services and fees		9,638			9,785			9,526			9,430			9,375			38,379			37,259
Net occupancy-premises		4,704			5,153			4,850			4,801			4,716			19,508			18,517
Equipment expense		4,183			4,231			4,144			4,074			4,165			16,632			16,039
Other expense		11,097			10,706			8,323			7,937			9,020			38,063			33,912
Total noninterest expense		71,545			72,734			69,614			69,826			69,722			283,719			276,449
Income before income taxes and tax eq adj		39,820			36,381			27,705			41,517			37,832			145,423			172,515
Tax equivalent adjustment		2,326			2,242			2,247			2,321			2,375			9,136			9,518
Income before income taxes		37,494			34,139			25,458			39,196			35,457			136,287			162,997
Income taxes		12,162			10,785			7,906			13,017			11,628			43,870			54,402
Net income		25,332			23,354			17,552			26,179			23,829			92,417			108,595
Preferred stock dividends		1,165			-			-			-			-			1,165			-
Accretion of preferred stock discount		188			-			-			-			-			188			-
Net income available to common shareholders	$	23,979		$	23,354		$	17,552		$	26,179		$	23,829		$	91,064		$	108,595
Per common share data
Earnings per share - basic	$	0.42		$	0.41		$	0.31		$	0.46		$	0.42		$	1.59		$	1.88
Earnings per share - diluted	$	0.42		$	0.41		$	0.31		$	0.46		$	0.42		$	1.59		$	1.88
Dividends per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23		$	0.92		$	0.89
Weighted average common shares outstanding
Basic		57,324,710			57,298,710			57,296,449			57,283,240			57,272,408			57,300,837			57,709,217
Diluted		57,375,590			57,337,342			57,335,393			57,312,428			57,341,472			57,336,909			57,786,223
Period end common shares outstanding		57,324,737			57,324,627			57,296,449			57,296,449			57,272,408			57,324,737			57,272,408
OTHER FINANCIAL DATA
Return on common equity		9.89	%		9.81	%		7.48	%		11.29	%		10.29	%		9.62	%		12.02	%
Return on average tangible common equity		15.10	%		15.16	%		11.70	%		17.59	%		16.28	%		14.88	%		19.17	%
Return on equity		9.54	%		9.81	%		7.48	%		11.29	%		10.29	%		9.53	%		12.02	%
Return on assets		1.07	%		1.02	%		0.77	%		1.19	%		1.06	%		1.01	%		1.23	%
Interest margin - Yield - FTE		5.68	%		5.90	%		6.00	%		6.54	%		6.94	%		6.02	%		6.98	%
Interest margin - Cost		1.47	%		1.90	%		2.10	%		2.61	%		3.01	%		2.01	%		3.08	%
Net interest margin - FTE		4.20	%		4.01	%		3.91	%		3.92	%		3.93	%		4.01	%		3.91	%
Efficiency ratio		55.86	%		58.85	%		56.64	%		56.64	%		56.80	%		56.99	%		58.80	%
Full-time equivalent employees		2,607			2,623			2,637			2,627			2,612
COMMON STOCK PERFORMANCE
Market value-Close	$	21.59		$	20.74		$	17.65		$	22.28		$	25.36
Common book value	$	16.98		$	16.55		$	16.33		$	16.36		$	16.06
Tangible common book value	$	11.49		$	11.04		$	10.80		$	10.81		$	10.48

See Notes to Consolidated Financials 

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION DECEMBER 31, 2008 ($ in thousands except per share data) (unaudited)

	Quarter Ended
NONPERFORMING ASSETS	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
Nonaccrual loans
Florida	$	75,092		$	71,125		$	70,484		$	49,654		$	43,787
Mississippi (1)		18,703			12,727			12,572			14,583			13,723
Tennessee (2)		3,638			4,012			5,216			6,550			4,431
Texas		16,605			17,418			7,039			7,207			3,232
Total nonaccrual loans		114,038			105,282			95,311			77,994			65,173
Other real estate
Florida		21,265			18,265			10,398			1,067			995
Mississippi (1)		6,113			6,062			5,258			1,741			1,123
Tennessee (2)		8,862			7,924			6,778			6,634			6,084
Texas		2,326			214			438			146			146
Total other real estate		38,566			32,465			22,872			9,588			8,348
Total nonperforming assets	$	152,604		$	137,747		$	118,183		$	87,582		$	73,521
LOANS PAST DUE OVER 90 DAYS
Loans	$	5,139		$	3,622		$	3,056		$	4,986		$	4,853
Loans HFS-Guaranteed GNMA serviced loans		18,095			20,332			15,809			15,868			11,847
Total loans past due over 90 days	$	23,234		$	23,954		$	18,865		$	20,854		$	16,700
	Quarter Ended															Year Ended
ALLOWANCE FOR LOAN LOSSES	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007			12/31/2008			12/31/2007
Beginning Balance	$	90,888		$	86,576		$	81,818		$	79,851		$	72,368		$	79,851		$	72,098
Provision for loan losses		16,684			14,473			31,012			14,243			17,001			76,412			23,784
Charge-offs		(15,039	)		(12,732	)		(28,820	)		(15,176	)		(11,904	)		(71,767	)		(26,790	)
Recoveries		2,389			2,571			2,566			2,900			2,386			10,426			10,759
Net charge-offs		(12,650	)		(10,161	)		(26,254	)		(12,276	)		(9,518	)		(61,341	)		(16,031	)
Ending Balance	$	94,922		$	90,888		$	86,576		$	81,818		$	79,851		$	94,922		$	79,851
PROVISION FOR LOAN LOSSES
Florida	$	6,491		$	3,167		$	24,145		$	9,557		$	12,523		$	43,360		$	16,463
Mississippi (1)		5,756			8,476			3,667			2,807			2,724			20,706			3,488
Tennessee (2)		1,461			27			2,440			779			1,056			4,707			1,837
Texas		2,976			2,803			760			1,100			698			7,639			1,996
Total provision for loan losses	$	16,684		$	14,473		$	31,012		$	14,243		$	17,001		$	76,412		$	23,784
NET CHARGE-OFFS
Florida	$	7,160		$	3,779		$	22,064		$	9,688		$	3,665		$	42,691		$	4,545
Mississippi (1)		4,387			4,515			4,214			1,574			3,999			14,690			8,737
Tennessee (2)		816			1,291			48			186			1,284			2,341			1,500
Texas		287			576			(72	)		828			570			1,619			1,249
Total net charge-offs	$	12,650		$	10,161		$	26,254		$	12,276		$	9,518		$	61,341		$	16,031
CREDIT QUALITY RATIOS
Net charge offs/average loans		0.73	%		0.58	%		1.49	%		0.69	%		0.53	%		0.87	%		0.23	%
Provision for loan losses/average loans		0.96	%		0.83	%		1.76	%		0.80	%		0.94	%		1.09	%		0.35	%
Nonperforming loans/total loans (incl LHFS)		1.64	%		1.53	%		1.35	%		1.08	%		0.91	%
Nonperforming assets/total loans (incl LHFS)		2.19	%		2.00	%		1.68	%		1.21	%		1.02	%
Nonperforming assets/total loans (incl LHFS) +ORE		2.18	%		1.99	%		1.67	%		1.21	%		1.02	%
ALL/total loans (excl LHFS)		1.41	%		1.35	%		1.26	%		1.17	%		1.13	%
ALL-commercial/total commercial loans		1.79	%		1.76	%		1.67	%		1.52	%		1.48	%
ALL-consumer/total consumer and home mortgage loans		0.72	%		0.64	%		0.60	%		0.60	%		0.59	%
ALL/nonperforming loans		83.24	%		86.33	%		90.84	%		104.90	%		122.52	%
CAPITAL RATIOS
Total equity/total assets		12.04	%		10.44	%		10.05	%		10.30	%		10.26	%
Common equity/total assets		9.94	%		10.44	%		10.05	%		10.30	%		10.26	%
Tangible equity/tangible assets		9.11	%		7.22	%		6.88	%		7.05	%		6.94	%
Tangible common equity/tangible assets		6.95	%		7.22	%		6.88	%		7.05	%		6.94	%
Tier 1 leverage ratio		10.42	%		8.11	%		7.87	%		8.12	%		7.86	%
Tier 1 risk-based capital ratio		13.01	%		9.86	%		9.58	%		9.42	%		9.17	%
Total risk-based capital ratio		14.95	%		11.80	%		11.46	%		11.21	%		10.93	%
(1) - Mississippi includes Central and Southern Mississippi Regions
(2) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions

See Notes to Consolidated Financials

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS DECEMBER 31, 2008 ($ in thousands except per share data) (unaudited)

Note 1 – Issuance of Preferred Stock

On November 21, 2008, Trustmark issued a total of 215,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, (no par) liquidation preference $1,000 per share, (Senior Preferred) to the United States Department of the Treasury (Treasury) in a private placement transaction as part of the Troubled Assets Relief Program Capital Purchase Program, a voluntary initiative for U.S. financial institutions designed to support the economy by increasing financing to businesses and consumers.  In the same transaction, Trustmark also issued to the Treasury a warrant to purchase 1,647,931 shares of Trustmark’s common stock at an exercise price of $19.57 per share.

The Senior Preferred pays cumulative dividends at the rate of 5.00% of the liquidation preference per year, payable on February 15, May 15, August 15 and November 15 of each year, in arrears, until, but excluding, February 15, 2014, and from that date thereafter at the rate of 9.00% of the liquidation preference per year.  Trustmark may not redeem the Senior Preferred prior to February 15, 2012, unless the Senior Preferred is redeemed with the proceeds of an offering of perpetual preferred stock or common stock that (1) qualifies as Tier 1 Capital for bank regulatory purposes and (2) results in gross proceeds to Trustmark of not less than $53.8 million.  Any redemption of the Senior Preferred will be at $1,000 per share plus any accrued and unpaid dividends and shall be subject to the approval of Trustmark’s primary federal banking regulator, the Board of Governors of the Federal Reserve System.

Prior to November 21, 2011, unless Trustmark has redeemed the Senior Preferred or the Treasury has transferred all of its shares of the Senior Preferred to a third party, the consent of Treasury will be required for Trustmark to declare or pay any dividend or make any distribution on its common stock (other than regular quarterly cash dividends of not more than $0.23 per share of common stock) or (ii) redeem, purchase or acquire any shares of its common stock or other equity or capital securities, other than in connection with benefit plans consistent with past practice and certain other circumstances specified in the purchase agreement for the Senior Preferred.

The Senior Preferred stock was recorded at issue for $204.9 million, with the remainder of the $10.1 million in cash proceeds recorded as warrants in Capital Surplus.  This allocation was derived by a third-party evaluation of the fair value of the Senior Preferred and warrant at the time of issuance.  The cash proceeds were then apportioned to the Senior Preferred and the warrants using their relative fair values.  The basis of the Senior Preferred will be accreted to the $215 million redemption value on a constant yield method over five years, and the accretion will be represented as an additional carrying cost of the equity.  The warrant is not subject to mark-to-market accounting, and will be carried in Capital Surplus at its original basis until exercise or expiration.  The warrant’s effect on shares outstanding will be included in dilutive shares using the treasury stock method.

Note 2 – Loan Composition

LOANS BY TYPE	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007
Loans secured by real estate:
Construction, land development and other land loans	$	1,028,788		$	1,062,319		$	1,158,549		$	1,212,052		$	1,194,940
Secured by 1-4 family residential properties		1,524,061			1,561,024			1,633,021			1,660,148			1,694,757
Secured by nonfarm, nonresidential properties		1,422,658			1,345,624			1,300,753			1,315,449			1,325,379
Other real estate secured		186,915			175,877			148,588			160,373			167,610
Commercial and industrial loans		1,305,938			1,328,035			1,313,620			1,286,578			1,283,014
Consumer loans		895,046			947,113			994,475			1,056,346			1,087,337
Other loans		358,997			320,738			310,369			321,088			287,755
Loans		6,722,403			6,740,730			6,859,375			7,012,034			7,040,792
Allowance for loan losses		(94,922	)		(90,888	)		(86,576	)		(81,818	)		(79,851	)
Net Loans	$	6,627,481		$	6,649,842		$	6,772,799		$	6,930,216		$	6,960,941
	December 31 ,2008
LOAN COMPOSITION BY REGION	Total			Florida			Mississippi (Central and Southern Regions)			Tennessee (Memphis, TN and Northern MS Regions)			Texas
Loans secured by real estate:
Construction, land development and other land loans	$	1,028,788		$	294,473		$	397,779		$	83,668		$	252,868
Secured by 1-4 family residential properties		1,524,061			91,559			1,224,662			175,321			32,519
Secured by nonfarm, nonresidential properties		1,422,658			179,123			804,186			208,751			230,598
Other real estate secured		186,915			12,632			141,951			13,551			18,781
Commercial and industrial loans		1,305,938			18,814			941,563			61,391			284,170
Consumer loans		895,046			3,206			848,835			31,400			11,605
Other loans		358,997			18,505			313,564			18,070			8,858
Loans	$	6,722,403		$	618,312		$	4,672,540		$	592,152		$	839,399
CONSTRUCTION AND LAND DEVELOPMENT LOANS BY REGION
Lots	$	127,043		$	76,849		$	31,885		$	5,524		$	12,785
Development		212,965			35,927			91,465			11,657			73,916
Unimproved land		301,759			114,232			106,522			34,049			46,956
1-4 family construction		191,351			29,246			89,644			11,936			60,525
Other construction		195,670			38,219			78,263			20,502			58,686
Construction and land development loans	$	1,028,788		$	294,473		$	397,779		$	83,668		$	252,868

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS DECEMBER 31, 2008 ($ in thousands except per share data) (unaudited)

FLORIDA CREDIT QUALITY	Total Loans		Criticized Loans (1)		Classified Loans (2)			Nonaccrual Loans		Impaired Loans (3)
Construction and land development loans:
Lots	$	76,849	$	21,174	$	15,529		$	10,386	$	5,698
Development		35,927		17,462		17,462			17,461		8,636
Unimproved land		114,232		69,462		36,247			20,496		19,680
1-4 family construction		29,246		12,626		12,626			9,630		9,630
Other construction		38,219		24,952		13,959			9,328		6,482
Construction and land development loans		294,473		145,676		95,823			67,301		50,126
Commercial, commercial real estate and consumer		323,839		31,011		19,265			7,791		1,019
Total Florida loans	$	618,312	$	176,687	$	115,088		$	75,092	$	51,145
FLORIDA CREDIT QUALITY	Total Loans Less Impaired Loans		Loan Loss Reserves		Loan Loss  Reserve % of Non-Impaired Loans
Construction and land development loans:
Lots	$	71,151	$	3,542		4.98	%
Development		27,291		2,537		9.30	%
Unimproved land		94,552		5,043		5.33	%
1-4 family construction		19,616		644		3.28	%
Other construction		31,737		2,850		8.98	%
Construction and land development loans		244,347		14,616		5.98	%
Commercial, commercial real estate and consumer		322,820		6,449		2.00	%
Total Florida loans	$	567,167	$	21,065		3.71	%

(1)   Criticized loans include all classified loans as defined in (2) below as well as other loans that exhibit potential credit weaknesses that, if not resolved, may ultimately result in a more severe classification.

(2)   Classified loans include those loans identified by management as exhibiting well defined credit weaknesses that may jeopardize repayment in full of the debt.

(3)   All nonaccrual loans over $1 million are individually assessed for impairment in accordance with SFAS No. 114.  Impaired loans have been determined to be collateral dependent and assessed using a fair value approach.  Fair value estimates begin with appraised values, normally from recently received and reviewed appraisals.  Appraised values are adjusted down for costs associated with asset disposal.  When a loan is deemed to be impaired, the full difference between book value and the most likely estimate of the asset’s net realizable value is charged off.

Note 3 – Mortgage Banking

Trustmark utilizes derivative instruments to offset changes in the fair value of mortgage servicing rights (MSR) attributable to changes in interest rates. Changes in the fair value of the derivative instrument are recorded in mortgage banking income, net and are offset by the changes in the fair value of MSR, as shown in the accompanying table. MSR fair values represent the effect of present value decay and the effect of changes in interest rates. Ineffectiveness of hedging MSR fair value is measured by comparing total hedge cost to the fair value of the MSR asset attributable to market changes. The impact of this strategy resulted in a net positive ineffectiveness of $0.3 million and $2.0 million for the quarters ended December 31, 2008 and 2007, respectively, and a net positive ineffectiveness of $11.1 million and $1.2 million for the years ended December 31, 2008 and 2007, respectively. The accompanying table shows that the MSR value has declined $36.8 million for the quarter ended December 31, 2008. This change is due primarily to higher prepayment expectations in the servicing portfolio caused by a significant decline in mortgage rates. Offsetting the MSR change is a $37.2 million increase in the value of derivative instruments which is primarily caused by declining Treasury rates resulting in a $0.3 million net ineffectiveness for the quarter ended December 31, 2008.

The following table illustrates the components of mortgage banking income included in noninterest income in the accompanying income statements:

	Quarter Ended															Year Ended
	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007			12/31/2008			12/31/2007
Mortgage servicing income, net	$	4,188		$	4,002		$	3,804		$	3,747		$	3,725		$	15,741		$	14,184
Change in fair value-MSR from market changes		(36,846	)		(903	)		13,104			(10,193	)		(8,143	)		(34,838	)		(9,466	)
Change in fair value of derivatives		37,160			1,680			(10,453	)		17,599			10,123			45,986			10,644
Change in fair value-MSR from runoff		(2,101	)		(2,152	)		(2,303	)		(2,430	)		(2,064	)		(8,986	)		(9,343	)
Gain on sales of loans		473			1,875			2,542			1,078			1,594			5,968			5,659
Other, net		1,519			(179	)		14			1,255			(268	)		2,609			346
Mortgage banking, net	$	4,393		$	4,323		$	6,708		$	11,056		$	4,967		$	26,480		$	12,024

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS DECEMBER 31, 2008 ($ in thousands except per share data) (unaudited)

Note 4 – Earning Assets and Interest-Bearing Liabilities

The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:

	Quarter Ended															Year Ended
	12/31/2008			9/30/2008			6/30/2008			3/31/2008			12/31/2007			12/31/2008			12/31/2007
Securities – Taxable		4.87	%		4.79	%		4.66	%		4.34	%		4.11	%		4.73	%		4.13	%
Securities – Nontaxable		6.68	%		6.74	%		6.93	%		7.12	%		7.19	%		6.87	%		7.27	%
Securities – Total		5.01	%		4.99	%		4.90	%		4.84	%		4.63	%		4.95	%		4.60	%
Loans		5.86	%		6.07	%		6.19	%		6.70	%		7.21	%		6.21	%		7.31	%
FF Sold & Rev Repo		0.99	%		2.24	%		2.21	%		3.14	%		4.84	%		2.14	%		5.26	%
Other Earning Assets		2.98	%		4.34	%		4.61	%		6.22	%		4.80	%		4.42	%		5.70	%
Total Earning Assets		5.68	%		5.90	%		6.00	%		6.54	%		6.94	%		6.02	%		6.98	%
Interest-bearing Deposits		1.98	%		2.32	%		2.58	%		3.12	%		3.52	%		2.50	%		3.63	%
FF Pch & Repo		0.58	%		1.88	%		1.96	%		2.96	%		4.22	%		1.66	%		4.52	%
Borrowings		2.20	%		3.81	%		3.64	%		5.22	%		5.25	%		3.48	%		5.60	%
Total Interest-bearing Liabilities		1.83	%		2.34	%		2.58	%		3.23	%		3.72	%		2.48	%		3.81	%
Net interest margin		4.20	%		4.01	%		3.91	%		3.92	%		3.93	%		4.01	%		3.91	%

During the fourth quarter of 2008,declining funding costs more than offset lower yields on earning assets, resulting in a 19 basis point increase in the net interest margin to 4.20%.  This expansion in the net interest margin is attributable to an increased level of fixed rate securities primarily funded by shorter, floating rate liabilities as well as to the abnormal spread between LIBOR and the overnight Federal Funds rate during the quarter that has since dissipated.

As discussed in Note 5 below, Trustmark corrected an accounting error in its consolidated financial statements resulting in a pre-tax benefit of $3.2 million and $2.6 million for the quarter and year ended December 31, 2007, respectively. This error correction has been excluded in the table above.  Including this error correction, Trustmark’s loan yield for the quarter and year ended December 31, 2007 was 7.39% and 7.35%, respectively, while the net interest margin for the quarter and year ended December 31, 2007 was 4.09% and 3.94%, respectively.

All periods ended in 2007 have been restated to include the addition of other earning assets, made up primarily of Federal Home Loan Bank and Federal Reserve Bank stock.

Note 5 – Significant Nonrecurring Transactions

The information below represents significant items occurring during the periods presented.  Management believes this information will help users compare Trustmark’s current results to those of prior periods.

MasterCard Class A Common

During the second quarter of 2008, MasterCard offered Class B shareholders the right to convert their stock into marketable Class A shares.  Trustmark exercised its right to convert its shares and sold them through a liquidation program.  The conversion and sale resulted in an after-tax gain of $3.3 million.

Visa Litigation Contingency

In the first quarter of 2008, Trustmark recognized a gain of $1.5 million resulting from the Visa initial public offering.  This gain more than offsets an accrual of $1.0 million that Trustmark recorded for the Visa litigation contingency relating to the Visa USA Inc. antitrust lawsuit settlement with American Express and other pending Visa litigation (reflecting Trustmark’s share as a Visa member).

Correction of Accounting Error

Trustmark’s consolidated financial statements for the fourth quarter of 2007 included a pre-tax benefit of $3.2 million for the correction of an error relating to the amortization of deferred loan fees, which is included in interest income on loans.  Of this amount, $2.6 million arose in prior periods, while $593 thousand was incurred over the first three quarters of 2007.  Trustmark’s Management as well as the Audit and Finance Committee of the Board of Directors have reviewed this accounting error utilizing Securities and Exchange Commission Staff Accounting Bulletins (SAB) Nos. 99 and 108 and believe the impact of this error was not material to 2007 or prior period consolidated financial statements.