News Release

Trustmark Corporation Announces 2009 Financial Results

and Declares $0.23 Quarterly Cash Dividend

Jackson, Miss. – January 26, 2010 – Trustmark Corporation (NASDAQ:TRMK) announced net income available to common shareholders of $13.9 million in the fourth quarter of 2009, which represented basic earnings per common share of $0.23.  Results during the quarter include a one-time, non-cash charge of $8.2 million, or $0.14 per common share, for the accelerated accretion of the discount associated with the full redemption of the Corporation’s $215 million of Preferred Stock from the U.S. Treasury Department.  For the year ended December 31, 2009, Trustmark’s net income available to common shareholders totaled $73.0 million, which represented basic earnings per common share of $1.26.  Trustmark’s performance during 2009 resulted in a return on tangible common equity of 10.80%.  Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per common share.  The dividend is payable March 15, 2010, to shareholders of record on March 1, 2010.

Richard G. Hickson, Chairman and CEO, stated, “Our financial performance remained strong, particularly in light of the current economic environment, as earnings during the fourth quarter continued to reflect the core operating strengths of Trustmark.  Results for the quarter included solid net interest income with an expanded net interest margin, reduced operating expenses, and increased tangible common equity.  During the quarter, Trustmark completed an extremely successful follow-on offering of common stock and fully repurchased all preferred stock issued to the U.S. Treasury.   Trustmark’s capital strength and solid profitability provide strategic flexibility to take advantage of opportunities in the marketplace and build shareholder value.”

Capital Strength

·   Public common stock offering generated net proceeds of $109.3 million

·   Repurchased $215 million of Preferred Stock from U.S. Treasury and redeemed warrant

·   Tangible common equity to tangible assets increased to 8.67%

·   Total risk-based capital of 14.58% significantly exceeded “well-capitalized” standards

During the fourth quarter, Trustmark completed a follow-on offering of 6,216,216 shares of its common stock at a price of $18.50 per share, which increased tangible common equity by $109.3 million, net of expenses.  Trustmark also completed the full repurchase of its 215,000 shares of Preferred Stock from the U.S. Treasury at a purchase price of $215.0 million plus a final accrued dividend of $716.7 thousand.  In addition, Trustmark repurchased the related warrant issued to the U.S. Treasury for $10.0 million.

“We are pleased with the market’s reception of our common equity offering and the related repurchase of our preferred securities and the redemption of the warrant from the U.S. Treasury.  As a result of these transactions, Trustmark has optimized its capital structure and continues to be a leader in capital strength among its mid-cap peers,” said Hickson.

The fundamental strengths of Trustmark’s business, as reflected by pre-tax, pre-provision earnings of $52.9 million in the fourth quarter and $214.2 million in 2009, remain solid despite the challenging economic environment.  Based upon the existing capital base and the expectation of the level of profitability going forward, Trustmark believes at this time in the sustainability of its cash dividend to common shareholders.

Credit Quality

·   Nonperforming loan growth slowed

·   Allowance for loan losses represented 155% of nonperforming loans (excluding impaired loans)

·   Florida construction and land development exposure declined 48.5% in 24 months

During the fourth quarter, nonperforming loans increased $2.7 million relative to the prior quarter to total $141.2 million, or 2.16% of total loans, while foreclosed real estate increased $18.4 million.  The increase in foreclosed real estate was principally attributable to the Corporation’s Florida market.  At December 31, 2009, nonperforming assets totaled $231.3 million, representing 3.48% of total loans and other real estate.  Managing credit risks resulting from the current real estate market conditions continues to be a primary focus of the Corporation.

Trustmark’s provision for loan losses totaled $17.7 million during the fourth quarter compared to net charge-offs of $17.1 million.  Allocation of Trustmark’s $103.7 million allowance for loan losses represented 2.10% of commercial loans and 0.80% of consumer and home mortgage loans, resulting in an allowance to total loans of 1.64% as of December 31, 2009.

Trustmark has made significant progress in the resolution of its construction and land development portfolio in Florida.  Over the last 24 months, this portfolio has been reduced by $187.3 million, or 48.5%, to $198.9 million.  At December 31, 2009, Florida non-impaired construction and land development loans totaled $163.0 million with an associated reserve for loan losses of $23.9 million, or 14.69%.

Asset Liability Management

·   Investment portfolio increased to $1.9 billion

·   Net interest income totaled $90.9 million

·   Net interest margin expanded to 4.33%

Loans held for investment totaled $6.3 billion at December 31, 2009, down $62.6 million relative to the prior quarter.  This reduction reflects Trustmark’s continued efforts to reduce exposure to construction and land development lending and its decision to discontinue indirect auto financing.  Current economic conditions have also resulted in reduced loan demand.  At December 31, 2009, Trustmark’s investment securities portfolio totaled $1.9 billion, up $146.2 million from the prior quarter, while total deposits increased $318.0 million to $7.2 billion.

Capital strength and strong liquidity continued to be reflected in lower deposit costs during the fourth quarter while disciplined loan pricing and required minimum loan rates continued to sustain loan yields.  As a result, net interest income totaled $90.9 million during the fourth quarter while the net interest margin expanded to 4.33%.

Noninterest Income

·   Noninterest income represented 31.3% of total revenue in the fourth quarter

·   Service charge income remained stable at $14.1 million

·   Mortgage banking income totaled $6.6 million

Noninterest income during the fourth quarter of 2009 totaled $40.3 million.  Service charges on deposit accounts remained stable at $14.1 million during the quarter while insurance revenue totaled $6.4 million, reflecting a seasonal decline on a sequential quarter basis.  Mortgage banking income during the quarter was $6.6 million, reflecting solid mortgage servicing income and secondary marketing gains.  Other general banking income totaled $6.0 million during the quarter, reflecting increased debit card revenue.  Despite challenging market conditions, wealth management revenue remained stable at $5.4 million when compared to the prior quarter.

Noninterest Expense

·   Noninterest expense declined $3.6 million, or 4.5%, during the fourth quarter

·   Salary and benefits expense remained well-controlled

·   Foreclosure expense reduced by $2.3 million

During the fourth quarter of 2009, noninterest expense totaled $75.6 million, a decrease of $3.6 million from the prior quarter.  Salary and benefit expense totaled $42.2 million during the fourth quarter, a reduction of $420 thousand relative to the prior quarter.  The Corporation reduced its full time equivalent workforce by 83, or 3.2%, during 2009, including 26 in the fourth quarter, through attrition.  Collectively, services and fees, net occupancy expense, and equipment expense were unchanged in the fourth quarter of 2009 relative to the prior quarter.  Other expense in the fourth quarter totaled $14.4 million, a decrease of $3.1 million from the prior quarter resulting from lower real estate foreclosure expense of $2.3 million.  Trustmark’s commitment to expense management is reflected in its efficiency ratio of 57.69% in the fourth quarter of 2009.

ADDITIONAL INFORMATION

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, January 27 at 10:00 a.m. Central Time to discuss the Corporation’s financial results.  Interested parties may listen to the conference call by dialing (800) 860-2442, passcode 436565 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 Thursday, February 4, 2010 in archived format at the same web address or by calling (877) 344-7529, passcode 436565.

Trustmark is a financial services company providing banking and financial solutions through over 150 offices and 2,500 associates in Florida, Mississippi, Tennessee and Texas.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute forward-looking statements within the meaning ofthe 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 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 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 our borrowers, changes in our ability to control expenses, changes in our 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 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.

Trustmark Contacts:
Investors:	Louis E. Greer	F. Joseph Rein, Jr.
	Treasurer and	Senior 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, 2009 ($ in thousands) (unaudited)

										Linked Quarter						Year over Year
QUARTERLY AVERAGE BALANCES	12/31/2009			9/30/2009			12/31/2008			$ Change			% Change			$ Change			% Change
Securities AFS-taxable	$	1,369,022		$	1,377,318		$	1,226,843		$	(8,296	)		-0.6	%	$	142,179			11.6	%
Securities AFS-nontaxable		98,456			89,259			40,708			9,197			10.3	%		57,748			n/m
Securities HTM-taxable		202,235			191,934			169,958			10,301			5.4	%		32,277			19.0	%
Securities HTM-nontaxable		50,411			55,440			71,843			(5,029	)		-9.1	%		(21,432	)		-29.8	%
Total securities		1,720,124			1,713,951			1,509,352			6,173			0.4	%		210,772			14.0	%
Loans (including loans held for sale)		6,544,448			6,693,482			6,908,296			(149,034	)		-2.2	%		(363,848	)		-5.3	%
Fed funds sold and rev repos		10,609			12,821			22,871			(2,212	)		-17.3	%		(12,262	)		-53.6	%
Other earning assets		44,197			43,894			49,197			303			0.7	%		(5,000	)		-10.2	%
Total earning assets		8,319,378			8,464,148			8,489,716			(144,770	)		-1.7	%		(170,338	)		-2.0	%
Allowance for loan losses		(105,223	)		(102,545	)		(91,802	)		(2,678	)		2.6	%		(13,421	)		14.6	%
Cash and due from banks		199,586			205,361			223,774			(5,775	)		-2.8	%		(24,188	)		-10.8	%
Other assets		855,714			871,477			801,890			(15,763	)		-1.8	%		53,824			6.7	%
Total assets	$	9,269,455		$	9,438,441		$	9,423,578		$	(168,986	)		-1.8	%	$	(154,123	)		-1.6	%
Interest-bearing demand deposits	$	1,134,995		$	1,148,537		$	1,149,071		$	(13,542	)		-1.2	%	$	(14,076	)		-1.2	%
Savings deposits		1,801,870			1,797,421			1,709,670			4,449			0.2	%		92,200			5.4	%
Time deposits less than $100,000		1,422,270			1,434,097			1,478,753			(11,827	)		-0.8	%		(56,483	)		-3.8	%
Time deposits of $100,000 or more		1,039,565			1,095,431			1,045,377			(55,866	)		-5.1	%		(5,812	)		-0.6	%
Total interest-bearing deposits		5,398,700			5,475,486			5,382,871			(76,786	)		-1.4	%		15,829			0.3	%
Fed funds purchased and repos		579,616			644,012			809,822			(64,396	)		-10.0	%		(230,206	)		-28.4	%
Short-term borrowings		238,060			263,891			494,928			(25,831	)		-9.8	%		(256,868	)		-51.9	%
Long-term FHLB advances		75,000			75,000			-			-			0.0	%		75,000			n/m
Subordinated notes		49,769			49,760			49,736			9			0.0	%		33			0.1	%
Junior subordinated debt securities		70,104			70,104			70,104			-			0.0	%		-			0.0	%
Total interest-bearing liabilities		6,411,249			6,578,253			6,807,461			(167,004	)		-2.5	%		(396,212	)		-5.8	%
Noninterest-bearing deposits		1,533,588			1,529,381			1,433,361			4,207			0.3	%		100,227			7.0	%
Other liabilities		118,906			113,820			126,704			5,086			4.5	%		(7,798	)		-6.2	%
Total liabilities		8,063,743			8,221,454			8,367,526			(157,711	)		-1.9	%		(303,783	)		-3.6	%
Preferred equity		157,270			206,308			91,385			(49,038	)		-23.8	%		65,885			72.1	%
Common equity		1,048,442			1,010,679			964,667			37,763			3.7	%		83,775			8.7	%
Total shareholders' equity		1,205,712			1,216,987			1,056,052			(11,275	)		-0.9	%		149,660			14.2	%
Total liabilities and equity	$	9,269,455		$	9,438,441		$	9,423,578		$	(168,986	)		-1.8	%	$	(154,123	)		-1.6	%
										Linked Quarter						Year over Year
PERIOD END BALANCES	12/31/2009			9/30/2009			12/31/2008			$ Change			% Change			$ Change			% Change
Cash and due from banks	$	213,519		$	191,449		$	257,930		$	22,070			11.5	%	$	(44,411	)		-17.2	%
Fed funds sold and rev repos		6,374			8,551			23,401			(2,177	)		-25.5	%		(17,027	)		-72.8	%
Securities available for sale		1,684,396			1,528,625			1,542,841			155,771			10.2	%		141,555			9.2	%
Securities held to maturity		232,984			242,603			259,629			(9,619	)		-4.0	%		(26,645	)		-10.3	%
Loans held for sale		226,225			237,152			238,265			(10,927	)		-4.6	%		(12,040	)		-5.1	%
Loans		6,319,797			6,382,440			6,722,403			(62,643	)		-1.0	%		(402,606	)		-6.0	%
Allowance for loan losses		(103,662	)		(103,016	)		(94,922	)		(646	)		0.6	%		(8,740	)		9.2	%
Net Loans		6,216,135			6,279,424			6,627,481			(63,289	)		-1.0	%		(411,346	)		-6.2	%
Premises and equipment, net		151,161			151,828			156,811			(667	)		-0.4	%		(5,650	)		-3.6	%
Mortgage servicing rights		50,513			56,042			42,882			(5,529	)		-9.9	%		7,631			17.8	%
Goodwill		291,104			291,104			291,104			-			0.0	%		-			0.0	%
Identifiable intangible assets		19,825			20,819			23,821			(994	)		-4.8	%		(3,996	)		-16.8	%
Other assets		433,782			360,901			326,744			72,881			20.2	%		107,038			32.8	%
Total assets	$	9,526,018		$	9,368,498		$	9,790,909		$	157,520			1.7	%	$	(264,891	)		-2.7	%
Deposits:
Noninterest-bearing	$	1,685,187		$	1,493,424		$	1,496,166		$	191,763			12.8	%	$	189,021			12.6	%
Interest-bearing		5,503,278			5,377,011			5,327,704			126,267			2.3	%		175,574			3.3	%
Total deposits		7,188,465			6,870,435			6,823,870			318,030			4.6	%		364,595			5.3	%
Fed funds purchased and repos		653,032			645,057			811,129			7,975			1.2	%		(158,097	)		-19.5	%
Short-term borrowings		253,957			315,105			730,958			(61,148	)		-19.4	%		(477,001	)		-65.3	%
Long-term FHLB advances		75,000			75,000			-			-			n/m			75,000			n/m
Subordinated notes		49,774			49,766			49,741			8			0.0	%		33			0.1	%
Junior subordinated debt securities		70,104			70,104			70,104			-			0.0	%		-			0.0	%
Other liabilities		125,626			121,670			126,641			3,956			3.3	%		(1,015	)		-0.8	%
Total liabilities		8,415,958			8,147,137			8,612,443			268,821			3.3	%		(196,485	)		-2.3	%
Preferred stock		-			206,461			205,126			(206,461	)		-100.0	%		(205,126	)		-100.0	%
Common stock		13,267			11,968			11,944			1,299			10.9	%		1,323			11.1	%
Capital surplus		244,864			145,352			139,471			99,512			68.5	%		105,393			75.6	%
Retained earnings		853,553			854,508			836,642			(955	)		-0.1	%		16,911			2.0	%
Accum other comprehensive
(loss) income, net of tax		(1,624	)		3,072			(14,717	)		(4,696	)		n/m			13,093			-89.0	%
Total shareholders' equity		1,110,060			1,221,361			1,178,466			(111,301	)		-9.1	%		(68,406	)		-5.8	%
Total liabilities and equity	$	9,526,018		$	9,368,498		$	9,790,909		$	157,520			1.7	%	$	(264,891	)		-2.7	%
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, 2009 ($ in thousands) (unaudited)

	Quarter Ended									Linked Quarter						Year over Year
INCOME STATEMENTS	12/31/2009			9/30/2009			12/31/2008			$ Change			% Change			$ Change			% Change
Interest and fees on loans-FTE	$	87,640		$	89,672		$	101,694		$	(2,032	)		-2.3	%	$	(14,054	)		-13.8	%
Interest on securities-taxable		19,093			19,524			17,108			(431	)		-2.2	%		1,985			11.6	%
Interest on securities-tax exempt-FTE		2,183			2,172			1,891			11			0.5	%		292			15.4	%
Interest on fed funds sold and rev repos		12			16			57			(4	)		-25.0	%		(45	)		-78.9	%
Other interest income		377			381			368			(4	)		-1.0	%		9			2.4	%
Total interest income-FTE		109,305			111,765			121,118			(2,460	)		-2.2	%		(11,813	)		-9.8	%
Interest on deposits		16,513			18,403			26,818			(1,890	)		-10.3	%		(10,305	)		-38.4	%
Interest on fed funds pch and repos		215			282			1,178			(67	)		-23.8	%		(963	)		-81.7	%
Other interest expense		1,716			1,786			3,399			(70	)		-3.9	%		(1,683	)		-49.5	%
Total interest expense		18,444			20,471			31,395			(2,027	)		-9.9	%		(12,951	)		-41.3	%
Net interest income-FTE		90,861			91,294			89,723			(433	)		-0.5	%		1,138			1.3	%
Provision for loan losses		17,709			15,770			16,684			1,939			12.3	%		1,025			6.1	%
Net interest income after provision-FTE		73,152			75,524			73,039			(2,372	)		-3.1	%		113			0.2	%
Service charges on deposit accounts		14,118			14,157			14,044			(39	)		-0.3	%		74			0.5	%
Insurance commissions		6,391			7,894			6,783			(1,503	)		-19.0	%		(392	)		-5.8	%
Wealth management		5,438			5,589			6,583			(151	)		-2.7	%		(1,145	)		-17.4	%
General banking - other		5,951			5,620			5,576			331			5.9	%		375			6.7	%
Mortgage banking, net		6,552			8,871			4,393			(2,319	)		-26.1	%		2,159			49.1	%
Other, net		1,814			994			935			820			82.5	%		879			94.0	%
Nonint inc-excl sec gains, net		40,264			43,125			38,314			(2,861	)		-6.6	%		1,950			5.1	%
Security gains, net		19			1,014			12			(995	)		-98.1	%		7			58.3	%
Total noninterest income		40,283			44,139			38,326			(3,856	)		-8.7	%		1,957			5.1	%
Salaries and employee benefits		42,209			42,629			41,923			(420	)		-1.0	%		286			0.7	%
Services and fees		9,919			10,124			9,638			(205	)		-2.0	%		281			2.9	%
Net occupancy-premises		5,063			4,862			4,704			201			4.1	%		359			7.6	%
Equipment expense		4,084			4,104			4,183			(20	)		-0.5	%		(99	)		-2.4	%
Other expense		14,372			17,515			11,097			(3,143	)		-17.9	%		3,275			29.5	%
Total noninterest expense		75,647			79,234			71,545			(3,587	)		-4.5	%		4,102			5.7	%
Income before income taxes and tax eq adj		37,788			40,429			39,820			(2,641	)		-6.5	%		(2,032	)		-5.1	%
Tax equivalent adjustment		2,569			2,417			2,326			152			6.3	%		243			10.4	%
Income before income taxes		35,219			38,012			37,494			(2,793	)		-7.3	%		(2,275	)		-6.1	%
Income taxes		10,742			12,502			12,162			(1,760	)		-14.1	%		(1,420	)		-11.7	%
Net income		24,477			25,510			25,332			(1,033	)		-4.0	%		(855	)		-3.4	%
Preferred stock dividends		2,061			2,688			1,165			(627	)		-23.3	%		896			76.9	%
Accretion of preferred stock discount		8,539			452			188			8,087			n/m			8,351			n/m
Net income available to common shareholders	$	13,877		$	22,370		$	23,979		$	(8,493	)		-38.0	%	$	(10,102	)		-42.1	%
Per common share data
Earnings per share - basic	$	0.23		$	0.39		$	0.42		$	(0.16	)		-41.0	%	$	(0.19	)		-45.2	%
Earnings per share - diluted	$	0.23		$	0.39		$	0.42		$	(0.16	)		-41.0	%	$	(0.19	)		-45.2	%
Dividends per share	$	0.23		$	0.23		$	0.23		$	-			0.0	%	$	-			0.0	%
Weighted average common shares outstanding
Basic		59,131,451			57,431,128			57,324,710
Diluted		59,287,459			57,559,492			57,375,590
Period end common shares outstanding		63,673,839			57,440,047			57,324,737
OTHER FINANCIAL DATA
Return on common equity		5.25	%		8.78	%		9.89	%
Return on average tangible common equity		7.80	%		13.06	%		15.10	%
Return on equity		8.05	%		8.32	%		9.54	%
Return on assets		1.05	%		1.07	%		1.07	%
Interest margin - Yield - FTE		5.21	%		5.24	%		5.68	%
Interest margin - Cost		0.88	%		0.96	%		1.47	%
Net interest margin - FTE		4.33	%		4.28	%		4.20	%
Efficiency ratio		57.69	%		58.95	%		55.86	%
Full-time equivalent employees		2,524			2,550			2,607
COMMON STOCK PERFORMANCE
Market value-Close	$	22.54		$	19.05		$	21.59
Common book value	$	17.43		$	17.67		$	16.98
Tangible common book value	$	12.55		$	12.24		$	11.49
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, 2009 ($ in thousands) (unaudited)

	Quarter Ended									Linked Quarter						Year over Year
NONPERFORMING ASSETS	12/31/2009			9/30/2009			12/31/2008			$ Change			% Change			$ Change			% Change
Nonaccrual loans
Florida	$	74,159		$	72,063		$	75,092		$	2,096			2.9	%	$	(933	)		-1.2	%
Mississippi (1)		31,050			28,470			18,703			2,580			9.1	%		12,347			66.0	%
Tennessee (2)		12,749			11,481			3,638			1,268			11.0	%		9,111			n/m
Texas		23,204			26,490			16,605			(3,286	)		-12.4	%		6,599			39.7	%
Total nonaccrual loans		141,162			138,504			114,038			2,658			1.9	%		27,124			23.8	%
Other real estate
Florida		45,927			34,030			21,265			11,897			35.0	%		24,662			n/m
Mississippi (1)		22,373			22,932			6,113			(559	)		-2.4	%		16,260			n/m
Tennessee (2)		10,105			9,809			8,862			296			3.0	%		1,243			14.0	%
Texas		11,690			4,918			2,326			6,772			n/m			9,364			n/m
Total other real estate		90,095			71,689			38,566			18,406			25.7	%		51,529			n/m
Total nonperforming assets	$	231,257		$	210,193		$	152,604		$	21,064			10.0	%	$	78,653			51.5	%
LOANS PAST DUE OVER 90 DAYS
Loans held for investment	$	8,901		$	6,854		$	5,139		$	2,047			29.9	%	$	3,762			73.2	%
Loans HFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	46,661		$	36,686		$	18,095		$	9,975			27.2	%	$	28,566			n/m
	Quarter Ended									Linked Quarter						Year over Year
ALLOWANCE FOR LOAN LOSSES	12/31/2009			9/30/2009			12/31/2008			$ Change			% Change			$ Change			% Change
Beginning Balance	$	103,016		$	101,751		$	90,888		$	1,265			1.2	%	$	12,128			13.3	%
Provision for loan losses		17,709			15,770			16,684			1,939			12.3	%		1,025			6.1	%
Charge-offs		(20,139	)		(18,687	)		(15,039	)		(1,452	)		7.8	%		(5,100	)		33.9	%
Recoveries		3,076			4,182			2,389			(1,106	)		-26.4	%		687			28.8	%
Net charge-offs		(17,063	)		(14,505	)		(12,650	)		(2,558	)		17.6	%		(4,413	)		34.9	%
Ending Balance	$	103,662		$	103,016		$	94,922		$	646			0.6	%	$	8,740			9.2	%
PROVISION FOR LOAN LOSSES
Florida	$	11,371		$	(3,295	)	$	6,491		$	14,666			n/m		$	4,880			75.2	%
Mississippi (1)		6,310			12,009			5,756			(5,699	)		-47.5	%		554			9.6	%
Tennessee (2)		2,097			159			1,461			1,938			n/m			636			43.5	%
Texas		(2,069	)		6,897			2,976			(8,966	)		n/m			(5,045	)		n/m
Total provision for loan losses	$	17,709		$	15,770		$	16,684		$	1,939			12.3	%	$	1,025			6.1	%
NET CHARGE-OFFS
Florida	$	8,174		$	131		$	7,160		$	8,043			n/m		$	1,014			14.2	%
Mississippi (1)		5,448			9,629			4,387			(4,181	)		-43.4	%		1,061			24.2	%
Tennessee (2)		1,169			872			816			297			34.1	%		353			43.3	%
Texas		2,272			3,873			287			(1,601	)		-41.3	%		1,985			n/m
Total net charge-offs	$	17,063		$	14,505		$	12,650		$	2,558			17.6	%	$	4,413			34.9	%
CREDIT QUALITY RATIOS
Net charge offs/average loans		1.03	%		0.86	%		0.73	%
Provision for loan losses/average loans		1.07	%		0.93	%		0.96	%
Nonperforming loans/total loans (incl LHFS)		2.16	%		2.09	%		1.64	%
Nonperforming assets/total loans (incl LHFS)		3.53	%		3.18	%		2.19	%
Nonperforming assets/total loans (incl LHFS) +ORE		3.48	%		3.14	%		2.18	%
ALL/total loans (excl LHFS)		1.64	%		1.61	%		1.41	%
ALL-commercial/total commercial loans		2.10	%		2.08	%		1.79	%
ALL-consumer/total consumer and home mortgage loans		0.80	%		0.76	%		0.72	%
ALL/nonperforming loans		73.43	%		74.38	%		83.24	%
ALL/nonperforming loans (excl impaired loans)		154.91	%		117.93	%		166.07	%
CAPITAL RATIOS
Total equity/total assets		11.65	%		13.04	%		12.04	%
Common equity/total assets		11.65	%		10.83	%		9.94	%
Tangible equity/tangible assets		8.67	%		10.04	%		9.11	%
Tangible common equity/tangible assets		8.67	%		7.76	%		6.95	%
Tangible common equity/risk-weighted assets		11.55	%		10.15	%		9.03	%
Tier 1 leverage ratio		9.74	%		10.70	%		10.42	%
Tier 1 common risk-based capital ratio		11.63	%		10.15	%		9.27	%
Tier 1 risk-based capital ratio		12.61	%		14.11	%		13.01	%
Total risk-based capital ratio		14.58	%		16.09	%		14.95	%
(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, 2009 ($ in thousands) (unaudited)

	Quarter Ended															Year Ended
AVERAGE BALANCES	12/31/2009			9/30/2009			6/30/2009			3/31/2009			12/31/2008			12/31/2009			12/31/2008
Securities AFS-taxable	$	1,369,022		$	1,377,318		$	1,395,303		$	1,505,328		$	1,226,843		$	1,411,275		$	794,443
Securities AFS-nontaxable		98,456			89,259			70,165			43,429			40,708			75,516			38,188
Securities HTM-taxable		202,235			191,934			194,079			178,417			169,958			191,732			182,373
Securities HTM-nontaxable		50,411			55,440			61,166			67,308			71,843			58,526			76,304
Total securities		1,720,124			1,713,951			1,720,713			1,794,482			1,509,352			1,737,049			1,091,308
Loans (including loans held for sale)		6,544,448			6,693,482			6,880,909			6,981,921			6,908,296			6,773,768			7,022,747
Fed funds sold and rev repos		10,609			12,821			20,973			15,988			22,871			15,077			23,422
Other earning assets		44,197			43,894			47,084			40,485			49,197			43,925			41,251
Total earning assets		8,319,378			8,464,148			8,669,679			8,832,876			8,489,716			8,569,819			8,178,728
Allowance for loan losses		(105,223	)		(102,545	)		(106,491	)		(97,986	)		(91,802	)		(103,080	)		(86,124	)
Cash and due from banks		199,586			205,361			214,633			239,508			223,774			214,637			245,748
Other assets		855,714			871,477			824,724			803,416			801,890			839,066			792,835
Total assets	$	9,269,455		$	9,438,441		$	9,602,545		$	9,777,814		$	9,423,578		$	9,520,442		$	9,131,187
Interest-bearing demand deposits	$	1,134,995		$	1,148,537		$	1,131,765		$	1,118,347		$	1,149,071		$	1,133,498		$	1,215,668
Savings deposits		1,801,870			1,797,421			1,869,794			1,815,672			1,709,670			1,821,086			1,776,397
Time deposits less than $100,000		1,422,270			1,434,097			1,493,172			1,485,680			1,478,753			1,458,563			1,539,299
Time deposits of $100,000 or more		1,039,565			1,095,431			1,096,170			1,074,873			1,045,377			1,076,465			1,059,173
Total interest-bearing deposits		5,398,700			5,475,486			5,590,901			5,494,572			5,382,871			5,489,612			5,590,537
Fed funds purchased and repos		579,616			644,012			589,542			674,175			809,822			621,638			626,767
Short-term borrowings		238,060			263,891			340,816			647,604			494,928			371,173			276,974
Long-term FHLB advances		75,000			75,000			75,000			58,333			-			70,890			-
Subordinated notes		49,769			49,760			49,752			49,744			49,736			49,756			49,724
Junior subordinated debt securities		70,104			70,104			70,104			70,104			70,104			70,104			70,104
Total interest-bearing liabilities		6,411,249			6,578,253			6,716,115			6,994,532			6,807,461			6,673,173			6,614,106
Noninterest-bearing deposits		1,533,588			1,529,381			1,554,642			1,470,822			1,433,361			1,522,300			1,412,312
Other liabilities		118,906			113,820			124,586			120,062			126,704			119,327			134,708
Total liabilities		8,063,743			8,221,454			8,395,343			8,585,416			8,367,526			8,314,800			8,161,126
Preferred equity		157,270			206,308			205,860			205,417			91,385			193,616			22,971
Common equity		1,048,442			1,010,679			1,001,342			986,981			964,667			1,012,026			947,090
Total shareholders' equity		1,205,712			1,216,987			1,207,202			1,192,398			1,056,052			1,205,642			970,061
Total liabilities and equity	$	9,269,455		$	9,438,441		$	9,602,545		$	9,777,814		$	9,423,578		$	9,520,442		$	9,131,187
PERIOD END BALANCES	12/31/2009			9/30/2009			6/30/2009			3/31/2009			12/31/2008
Cash and due from banks	$	213,519		$	191,449		$	220,706		$	231,211		$	257,930
Fed funds sold and rev repos		6,374			8,551			16,367			8,014			23,401
Securities available for sale		1,684,396			1,528,625			1,488,428			1,613,047			1,542,841
Securities held to maturity		232,984			242,603			254,380			256,677			259,629
Loans held for sale		226,225			237,152			280,975			301,691			238,265
Loans		6,319,797			6,382,440			6,570,582			6,640,597			6,722,403
Allowance for loan losses		(103,662	)		(103,016	)		(101,751	)		(100,358	)		(94,922	)
Net Loans		6,216,135			6,279,424			6,468,831			6,540,239			6,627,481
Premises and equipment, net		151,161			151,828			156,541			157,068			156,811
Mortgage servicing rights		50,513			56,042			63,316			45,256			42,882
Goodwill		291,104			291,104			291,104			291,104			291,104
Identifiable intangible assets		19,825			20,819			21,820			22,820			23,821
Other assets		433,782			360,901			364,402			308,587			326,744
Total assets	$	9,526,018		$	9,368,498		$	9,626,870		$	9,775,714		$	9,790,909
Deposits:
Noninterest-bearing	$	1,685,187		$	1,493,424		$	1,558,934		$	1,504,032		$	1,496,166
Interest-bearing		5,503,278			5,377,011			5,588,955			5,652,908			5,327,704
Total deposits		7,188,465			6,870,435			7,147,889			7,156,940			6,823,870
Fed funds purchased and repos		653,032			645,057			627,616			607,083			811,129
Short-term borrowings		253,957			315,105			314,751			448,380			730,958
Long-term FHLB advances		75,000			75,000			75,000			75,000			-
Subordinated notes		49,774			49,766			49,758			49,750			49,741
Junior subordinated debt securities		70,104			70,104			70,104			70,104			70,104
Other liabilities		125,626			121,670			139,638			168,089			126,641
Total liabilities		8,415,958			8,147,137			8,424,756			8,575,346			8,612,443
Preferred stock		-			206,461			206,009			205,564			205,126
Common stock		13,267			11,968			11,964			11,955			11,944
Capital surplus		244,864			145,352			143,654			142,167			139,471
Retained earnings		853,553			854,508			845,882			845,779			836,642
Accum other comprehensive
(loss) income, net of tax		(1,624	)		3,072			(5,395	)		(5,097	)		(14,717	)
Total shareholders' equity		1,110,060			1,221,361			1,202,114			1,200,368			1,178,466
Total liabilities and equity	$	9,526,018		$	9,368,498		$	9,626,870		$	9,775,714		$	9,790,909

See Notes to Consolidated Financials

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION December 31, 2009 ($ in thousands) (unaudited)

	Quarter Ended															Year Ended
INCOME STATEMENTS	12/31/2009			9/30/2009			6/30/2009			3/31/2009			12/31/2008			12/31/2009			12/31/2008
Interest and fees on loans-FTE	$	87,640		$	89,672		$	91,652		$	92,382		$	101,694		$	361,346		$	436,064
Interest on securities-taxable		19,093			19,524			20,444			21,654			17,108			80,715			46,161
Interest on securities-tax exempt-FTE		2,183			2,172			2,040			1,834			1,891			8,229			7,866
Interest on fed funds sold and rev repos		12			16			19			19			57			66			502
Other interest income		377			381			343			313			368			1,414			1,822
Total interest income-FTE		109,305			111,765			114,498			116,202			121,118			451,770			492,415
Interest on deposits		16,513			18,403			21,430			22,540			26,818			78,886			139,922
Interest on fed funds pch and repos		215			282			272			364			1,178			1,133			10,393
Other interest expense		1,716			1,786			1,980			2,352			3,399			7,834			13,804
Total interest expense		18,444			20,471			23,682			25,256			31,395			87,853			164,119
Net interest income-FTE		90,861			91,294			90,816			90,946			89,723			363,917			328,296
Provision for loan losses		17,709			15,770			26,767			16,866			16,684			77,112			76,412
Net interest income after provision-FTE		73,152			75,524			64,049			74,080			73,039			286,805			251,884
Service charges on deposit accounts		14,118			14,157			13,244			12,568			14,044			54,087			53,717
Insurance commissions		6,391			7,894			7,372			7,422			6,783			29,079			32,440
Wealth management		5,438			5,589			5,497			5,555			6,583			22,079			27,600
General banking - other		5,951			5,620			6,063			5,407			5,576			23,041			23,230
Mortgage banking, net		6,552			8,871			2,543			10,907			4,393			28,873			26,480
Other, net		1,814			994			1,693			1,115			935			5,616			13,286
Nonint inc-excl sec gains, net		40,264			43,125			36,412			42,974			38,314			162,775			176,753
Security gains, net		19			1,014			4,404			30			12			5,467			505
Total noninterest income		40,283			44,139			40,816			43,004			38,326			168,242			177,258
Salaries and employee benefits		42,209			42,629			40,989			43,425			41,923			169,252			171,137
Services and fees		9,919			10,124			10,249			10,000			9,638			40,292			38,379
Net occupancy-premises		5,063			4,862			4,948			5,178			4,704			20,051			19,508
Equipment expense		4,084			4,104			4,108			4,166			4,183			16,462			16,632
Other expense		14,372			17,515			18,677			11,638			11,097			62,202			38,063
Total noninterest expense		75,647			79,234			78,971			74,407			71,545			308,259			283,719
Income before income taxes and tax eq adj		37,788			40,429			25,894			42,677			39,820			146,788			145,423
Tax equivalent adjustment		2,569			2,417			2,325			2,397			2,326			9,708			9,136
Income before income taxes		35,219			38,012			23,569			40,280			37,494			137,080			136,287
Income taxes		10,742			12,502			6,994			13,795			12,162			44,033			43,870
Net income		24,477			25,510			16,575			26,485			25,332			93,047			92,417
Preferred stock dividends		2,061			2,688			2,687			2,688			1,165			10,124			1,165
Accretion of preferred stock discount		8,539			452			445			438			188			9,874			188
Net income available to common shareholders	$	13,877		$	22,370		$	13,443		$	23,359		$	23,979		$	73,049		$	91,064
Per common share data
Earnings per share - basic	$	0.23		$	0.39		$	0.23		$	0.41		$	0.42		$	1.26		$	1.59
Earnings per share - diluted	$	0.23		$	0.39		$	0.23		$	0.41		$	0.42		$	1.26		$	1.59
Dividends per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23		$	0.92		$	0.92
Weighted average common shares outstanding
Basic		59,131,451			57,431,128			57,406,499			57,350,874			57,324,710			57,833,774			57,300,837
Diluted		59,287,459			57,559,492			57,546,928			57,398,375			57,375,590			57,936,433			57,336,909
Period end common shares outstanding		63,673,839			57,440,047			57,423,841			57,378,318			57,324,737			63,673,839			57,324,737
OTHER FINANCIAL DATA
Return on common equity		5.25	%		8.78	%		5.38	%		9.60	%		9.89	%		7.22	%		9.62	%
Return on average tangible common equity		7.80	%		13.06	%		8.20	%		14.46	%		15.10	%		10.80	%		14.88	%
Return on equity		8.05	%		8.32	%		5.51	%		9.01	%		9.54	%		7.72	%		9.53	%
Return on assets		1.05	%		1.07	%		0.69	%		1.10	%		1.07	%		0.98	%		1.01	%
Interest margin - Yield - FTE		5.21	%		5.24	%		5.30	%		5.34	%		5.68	%		5.27	%		6.02	%
Interest margin - Cost		0.88	%		0.96	%		1.10	%		1.16	%		1.47	%		1.03	%		2.01	%
Net interest margin - FTE		4.33	%		4.28	%		4.20	%		4.18	%		4.20	%		4.25	%		4.01	%
Efficiency ratio		57.69	%		58.95	%		58.57	%		55.56	%		55.86	%		57.70	%		56.99	%
Full-time equivalent employees		2,524			2,550			2,562			2,589			2,607
COMMON STOCK PERFORMANCE
Market value-Close	$	22.54		$	19.05		$	19.32		$	18.38		$	21.59
Common book value	$	17.43		$	17.67		$	17.35		$	17.34		$	16.98
Tangible common book value	$	12.55		$	12.24		$	11.90		$	11.87		$	11.49

See Notes to Consolidated Financials

  TRUSTMARK CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL INFORMATION December 31, 2009 ($ in thousands) (unaudited)

	Quarter Ended
NONPERFORMING ASSETS	12/31/2009			9/30/2009			6/30/2009			3/31/2009			12/31/2008
Nonaccrual loans
Florida	$	74,159		$	72,063		$	72,185		$	83,789		$	75,092
Mississippi (1)		31,050			28,470			32,040			21,829			18,703
Tennessee (2)		12,749			11,481			2,941			5,763			3,638
Texas		23,204			26,490			25,824			23,122			16,605
Total nonaccrual loans		141,162			138,504			132,990			134,503			114,038
Other real estate
Florida		45,927			34,030			26,387			19,830			21,265
Mississippi (1)		22,373			22,932			15,542			9,932			6,113
Tennessee (2)		10,105			9,809			10,234			9,051			8,862
Texas		11,690			4,918			3,033			3,322			2,326
Total other real estate		90,095			71,689			55,196			42,135			38,566
Total nonperforming assets	$	231,257		$	210,193		$	188,186		$	176,638		$	152,604
LOANS PAST DUE OVER 90 DAYS
Loans held for investment	$	8,901		$	6,854		$	6,873		$	10,004		$	5,139
Loans HFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	46,661		$	36,686		$	28,523		$	21,128		$	18,095
	Quarter Ended															Year Ended
ALLOWANCE FOR LOAN LOSSES	12/31/2009			9/30/2009			6/30/2009			3/31/2009			12/31/2008			12/31/2009			12/31/2008
Beginning Balance	$	103,016		$	101,751		$	100,358		$	94,922		$	90,888		$	94,922		$	79,851
Provision for loan losses		17,709			15,770			26,767			16,866			16,684			77,112			76,412
Charge-offs		(20,139	)		(18,687	)		(27,870	)		(14,015	)		(15,039	)		(80,711	)		(71,767	)
Recoveries		3,076			4,182			2,496			2,585			2,389			12,339			10,426
Net charge-offs		(17,063	)		(14,505	)		(25,374	)		(11,430	)		(12,650	)		(68,372	)		(61,341	)
Ending Balance	$	103,662		$	103,016		$	101,751		$	100,358		$	94,922		$	103,662		$	94,922
PROVISION FOR LOAN LOSSES
Florida	$	11,371		$	(3,295	)	$	28,915		$	10,733		$	6,491		$	47,724		$	43,360
Mississippi (1)		6,310			12,009			(1,044	)		4,386			5,756			21,661			20,706
Tennessee (2)		2,097			159			(659	)		1,621			1,461			3,218			4,707
Texas		(2,069	)		6,897			(445	)		126			2,976			4,509			7,639
Total provision for loan losses	$	17,709		$	15,770		$	26,767		$	16,866		$	16,684		$	77,112		$	76,412
NET CHARGE-OFFS
Florida	$	8,174		$	131		$	21,167		$	6,933		$	7,160		$	36,405		$	42,691
Mississippi (1)		5,448			9,629			3,267			3,455			4,387			21,799			14,690
Tennessee (2)		1,169			872			897			785			816			3,723			2,341
Texas		2,272			3,873			43			257			287			6,445			1,619
Total net charge-offs	$	17,063		$	14,505		$	25,374		$	11,430		$	12,650		$	68,372		$	61,341
CREDIT QUALITY RATIOS
Net charge offs/average loans		1.03	%		0.86	%		1.48	%		0.66	%		0.73	%		1.01	%		0.87	%
Provision for loan losses/average loans		1.07	%		0.93	%		1.56	%		0.98	%		0.96	%		1.14	%		1.09	%
Nonperforming loans/total loans (incl LHFS)		2.16	%		2.09	%		1.94	%		1.94	%		1.64	%
Nonperforming assets/total loans (incl LHFS)		3.53	%		3.18	%		2.75	%		2.54	%		2.19	%
Nonperforming assets/total loans (incl LHFS) +ORE		3.48	%		3.14	%		2.72	%		2.53	%		2.18	%
ALL/total loans (excl LHFS)		1.64	%		1.61	%		1.55	%		1.51	%		1.41	%
ALL-commercial/total commercial loans		2.10	%		2.08	%		2.01	%		1.95	%		1.79	%
ALL-consumer/total consumer and home mortgage loans		0.80	%		0.76	%		0.73	%		0.73	%		0.72	%
ALL/nonperforming loans		73.43	%		74.38	%		76.51	%		74.61	%		83.24	%
ALL/nonperforming loans (excl impaired loans)		154.91	%		117.93	%		123.15	%		137.47	%		166.07	%
CAPITAL RATIOS
Total equity/total assets		11.65	%		13.04	%		12.49	%		12.28	%		12.04	%
Common equity/total assets		11.65	%		10.83	%		10.35	%		10.18	%		9.94	%
Tangible equity/tangible assets		8.67	%		10.04	%		9.55	%		9.37	%		9.11	%
Tangible common equity/tangible assets		8.67	%		7.76	%		7.34	%		7.20	%		6.95	%
Tangible common equity/risk-weighted assets		11.55	%		10.15	%		9.56	%		9.43	%		9.03	%
Tier 1 leverage ratio		9.74	%		10.70	%		10.38	%		10.17	%		10.42	%
Tier 1 common risk-based capital ratio		11.63	%		10.15	%		9.66	%		9.55	%		9.27	%
Tier 1 risk-based capital ratio		12.61	%		14.11	%		13.50	%		13.34	%		13.01	%
Total risk-based capital ratio		14.58	%		16.09	%		15.45	%		15.28	%		14.95	%
(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, 2009 ($ in thousands) (unaudited)

Note 1 - Securities Available for Sale and Held to Maturity

The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity ($ in thousands):

	12/31/2009		9/30/2009		6/30/2009		3/31/2009		12/31/2008
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities	$	-	$	-	$	-	$	759	$	6,525
U.S. Government agency obligations
Issued by U.S. Government agencies		20		21		23		25		27
Issued by U.S. Government sponsored agencies		47,917		24,992		25,189		25,235		25,367
Obligations of states and political subdivisions		117,508		151,427		137,799		125,366		98,653
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		12,192		9,590		10,000		10,658		8,726
Issued by FNMA and FHLMC		49,279		7,229		7,193		79,007		19,186
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		1,382,556		1,258,779		1,209,677		1,287,745		1,364,988
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		68,735		70,359		92,395		76,183		11,499
Corporate debt securities		6,189		6,228		6,152		8,069		7,870
Total securities available for sale	$	1,684,396	$	1,528,625	$	1,488,428	$	1,613,047	$	1,542,841
SECURITIES HELD TO MATURITY
Obligations of states and political subdivisions	$	74,643	$	78,522	$	89,331	$	95,799	$	102,901
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		7,044		7,269		7,298		5,325		-
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		148,226		153,728		154,655		155,553		156,728
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		3,071		3,084		3,096		-		-
Total securities held to maturity	$	232,984	$	242,603	$	254,380	$	256,677	$	259,629

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 89% of the portfolio in U.S. Government agency-backed obligations and other AAA rated securities.  None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime.  Furthermore, outside of membership in the Federal Home Loan Bank of Dallas, Federal Reserve Bank and Depository Trust and Clearing Corporation, Trustmark does not hold any equity investment in government sponsored entities.

Note 2 – Loan Composition

LOANS BY TYPE	12/31/2009			9/30/2009			6/30/2009			3/31/2009			12/31/2008
Loans secured by real estate:
Construction, land development and other land loans	$	830,069		$	872,367		$	960,945		$	1,000,020		$	1,028,788
Secured by 1-4 family residential properties		1,650,743			1,637,322			1,663,575			1,601,600			1,524,061
Secured by nonfarm, nonresidential properties		1,467,307			1,472,147			1,472,212			1,425,937			1,422,658
Other real estate secured		197,421			209,957			186,770			184,204			186,915
Commercial and industrial loans		1,126,676			1,165,970			1,203,230			1,258,887			1,305,938
Consumer loans		606,315			661,075			727,399			804,958			895,046
Other loans		441,266			363,602			356,451			364,991			358,997
Loans		6,319,797			6,382,440			6,570,582			6,640,597			6,722,403
Allowance for loan losses		(103,662	)		(103,016	)		(101,751	)		(100,358	)		(94,922	)
Net Loans	$	6,216,135		$	6,279,424		$	6,468,831		$	6,540,239		$	6,627,481

The allowance for loan losses is maintained at a level believed adequate by Management, based on estimated probable losses within the existing loan portfolio.  Trustmark’s allowance for loan loss methodology is based on guidance provided in SEC Staff Accounting Bulletin No. 102, “Selected Loan Loss Allowance Methodology and Documentation Issues,” as well as on other regulatory guidance. Accordingly, Trustmark’s methodology is based on historical loss experience by type of loan and internal risk ratings, homogeneous risk pools and specific loss allocations, with adjustments considering environmental factors such as current economic events, industry and geographical conditions and portfolio performance indicators.  The provision for loan losses reflects loan quality trends, including the levels of and trends related to nonaccrual loans, past due loans, potential problem loans, criticized loans and net charge-offs or recoveries, among other factors, in compliance with the Interagency Policy Statement on the Allowance for Loan and Lease Losses published by the governmental regulating agencies for financial services companies.

During the quarter ended June 30, 2009, Trustmark refined its allowance for loan loss methodology for commercial loans classifying them into thirteen separate homogenous loan types, while taking into consideration the uniqueness of our markets.  In addition, Trustmark combined its quantitative historical loan loss factors and qualitative risk factors for each of its homogenous loan types.  These enhancements were implemented based upon current regulatory guidance from Trustmark’s primary regulator and as a result, approximately $8.0 million in qualitative reserves were reallocated to specific reserves.

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2009 ($ in thousands) (unaudited)

	December 31, 2009
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	$	830,069	$	198,906	$	302,918	$	59,322	$	268,923
Secured by 1-4 family residential properties		1,650,743		87,282		1,367,633		165,016		30,812
Secured by nonfarm, nonresidential properties		1,467,307		180,267		828,954		216,520		241,566
Other real estate secured		197,421		5,388		162,607		9,969		19,457
Commercial and industrial loans		1,126,676		19,869		832,166		60,351		214,290
Consumer loans		606,315		2,287		565,973		28,946		9,109
Other loans		441,266		29,655		365,162		22,576		23,873
Loans	$	6,319,797	$	523,654	$	4,425,413	$	562,700	$	808,030
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots	$	99,738	$	61,725	$	24,791	$	4,551	$	8,671
Development		187,384		27,227		68,443		9,185		82,529
Unimproved land		277,723		76,762		108,130		32,623		60,208
1-4 family construction		120,813		10,929		70,440		5,825		33,619
Other construction		144,411		22,263		31,114		7,138		83,896
Construction, land development and other land loans	$	830,069	$	198,906	$	302,918	$	59,322	$	268,923

								Classified (3)
FLORIDA CREDIT QUALITY	Total Loans		Criticized Loans (1)		Special Mention (2)			Accruing		Nonimpaired  Nonaccrual		Impaired Nonaccrual (4)
Construction, land development and other land loans:
Lots	$	61,725	$	24,735	$	-		$	11,335	$	10,987	$	2,413
Development		27,227		17,336		-			3,964		770		12,602
Unimproved land		76,762		50,515		19,945			12,064		1,210		17,296
1-4 family construction		10,929		4,608		1,489			-		419		2,700
Other construction		22,263		13,355		2,735			9,215		489		916
Construction, land development and other land loans		198,906		110,549		24,169			36,578		13,875		35,927
Commercial, commercial real estate and consumer		324,748		79,793		32,005			23,431		14,963		9,394
Total Florida loans	$	523,654	$	190,342	$	56,174		$	60,009	$	28,838	$	45,321
FLORIDA CREDIT QUALITY (continued)	Total Loans Less Impaired  Loans		Loan Loss Reserves		Loan Loss Reserve % of NonImpaired Loans
Construction, land development and other land loans:
Lots	$	59,312	$	7,588		12.79	%
Development		14,625		2,578		17.63	%
Unimproved land		59,466		9,707		16.32	%
1-4 family construction		8,229		449		5.46	%
Other construction		21,347		3,622		16.97	%
Construction, land development and other land loans		162,979		23,944		14.69	%
Commercial, commercial real estate and consumer		315,354		8,439		2.68	%
Total Florida loans	$	478,333	$	32,383		6.77	%

(1)   Criticized loans equal all special mention and classified loans.

(2)   Special mention loans exhibit potential credit weaknesses that, if not resolved, may ultimately result in a more severe classification.

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

(4)   All nonaccrual loans over $1 million are individually assessed for impairment.  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.

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2009 ($ in thousands) (unaudited)

Note 2 - Loan Composition (continued)
LOAN COMPOSITION -FLORIDA	12/31/2009		9/30/2009		6/30/2009		3/31/2009		12/31/2008
Loans secured by real estate:
Construction, land development and other land loans	$	198,906	$	211,974	$	245,494	$	276,315	$	294,473
Secured by 1-4 family residential properties		87,282		92,088		88,007		93,911		91,559
Secured by nonfarm, nonresidential properties		180,267		182,548		180,559		180,649		179,123
Other real estate secured		5,388		12,891		12,900		12,747		12,632
Commercial and industrial loans		19,869		19,762		19,907		18,049		18,814
Consumer loans		2,287		2,276		2,238		2,531		3,206
Other loans		29,655		29,880		21,692		21,823		18,505
Loans	$	523,654	$	551,419	$	570,797	$	606,025	$	618,312
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS - FLORIDA
Lots	$	61,725	$	63,645	$	69,005	$	74,002	$	76,849
Development		27,227		28,376		33,533		41,769		35,927
Unimproved land		76,762		83,437		93,379		99,063		114,232
1-4 family construction		10,929		13,237		17,344		25,878		29,246
Other construction		22,263		23,279		32,233		35,603		38,219
Construction, land development and other land loans	$	198,906	$	211,974	$	245,494	$	276,315	$	294,473

Note 3 – Stockholders’ Equity

Common Stock Offering

On December 7, 2009, Trustmark completed a public offering of 6,216,216 shares of its common stock, including 810,810 shares issued pursuant to the exercise of the underwriters’ over-allotment option, at a price of $18.50 per share. Trustmark received net proceeds of approximately $109.3 million after deducting underwriting discounts, commissions and estimated offering expenses.  Proceeds from this offering were used in the redemption of preferred stock discussed below.

Repurchase of Preferred Stock

On November 21, 2008, Trustmark issued 215,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, (Preferred Stock) to the U.S. Treasury (Treasury) in a private placement transaction as part of the Troubled Assets Relief Program Capital Purchase Program (TARP CPP), a voluntary initiative for healthy U.S. financial institutions. As part of its participation in the TARP CPP, Trustmark also issued to the Treasury a ten-year warrant (the Warrant) to purchase up to 1,647,931 shares of Trustmark’s common stock, at an initial exercise price of $19.57 per share, subject to customary anti-dilution adjustments.

On December 9, 2009, Trustmark completed the repurchase of its 215,000 shares of Preferred Stock from the Treasury at a purchase price of $215.0 million plus a final accrued dividend of $716.7 thousand.  The repurchase of the Preferred Stock resulted in a one-time, non-cash charge of approximately $8.2 million in Trustmark’s fourth quarter financial statements for the unaccreted discount recorded at the date of issuance of the Preferred Stock.  In addition, on December 30, 2009, Trustmark repurchased in full from the Treasury, the Warrant to purchase 1,647,931 shares of Trustmark’s common stock, which was issued to the Treasury pursuant to the TARP CPP.  The purchase price paid by Trustmark to the Treasury for the Warrant was $10.0 million.

Note 4 – Yields on 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
	12/31/2009			9/30/2009			6/30/2009			3/31/2009			12/31/2008			12/31/2009			12/31/2008
Securities – Taxable		4.82	%		4.94	%		5.16	%		5.22	%		4.87	%		5.04	%		4.73	%
Securities – Nontaxable		5.82	%		5.96	%		6.23	%		6.72	%		6.68	%		6.14	%		6.87	%
Securities – Total		4.91	%		5.02	%		5.24	%		5.31	%		5.01	%		5.12	%		4.95	%
Loans		5.31	%		5.32	%		5.34	%		5.37	%		5.86	%		5.33	%		6.21	%
FF Sold & Rev Repo		0.45	%		0.50	%		0.36	%		0.48	%		0.99	%		0.44	%		2.14	%
Other Earning Assets		3.38	%		3.44	%		2.92	%		3.14	%		2.98	%		3.22	%		4.42	%
Total Earning Assets		5.21	%		5.24	%		5.30	%		5.34	%		5.68	%		5.27	%		6.02	%
Interest-bearing Deposits		1.21	%		1.33	%		1.54	%		1.66	%		1.98	%		1.44	%		2.50	%
FF Pch & Repo		0.15	%		0.17	%		0.19	%		0.22	%		0.58	%		0.18	%		1.66	%
Borrowings		1.57	%		1.54	%		1.48	%		1.16	%		2.20	%		1.39	%		3.48	%
Total Interest-bearing Liabilities		1.14	%		1.23	%		1.41	%		1.46	%		1.83	%		1.32	%		2.48	%
Net interest margin		4.33	%		4.28	%		4.20	%		4.18	%		4.20	%		4.25	%		4.01	%

During the fourth quarter of 2009, the net interest margin increased 5 basis points to 4.33%, from 4.28% for the third quarter of 2009. The increase is due to decreasing deposit costs, offset somewhat by a modest decline in earning asset yields.

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2009 ($ in thousands) (unaudited)

Note 4 – Yields on Earning Assets and Interest-Bearing Liabilities (continued)

During 2009, Trustmark’s net interest margin expanded to 4.25%, up 24 basis points compared to 2008.  This increase is primarily a result of three factors including the impact of an increased level of fixed rate securities funded primarily through short-term and floating rate liabilities, moderating certificate of deposit costs and improved loan pricing trends.  These benefits have outweighed the continued downward repricing of fixed rate assets.

Note 5 – Other Noninterest Expense

Other noninterest expense consisted of the following ($ in thousands):

	Quarter Ended										Year Ended
	12/31/2009		9/30/2009		6/30/2009		3/31/2009		12/31/2008		12/31/2009		12/31/2008
FDIC assessment expense	$	2,865	$	2,913	$	7,253	$	2,777	$	1,502	$	15,808	$	3,471
ORE/Foreclosure expense		3,581		5,870		2,733		630		684		12,814		2,380
Other expense		7,926		8,732		8,691		8,231		8,911		33,580		32,212
Total other expense	$	14,372	$	17,515	$	18,677	$	11,638	$	11,097	$	62,202	$	38,063

Note 6 – 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.  The MSR fair value represents the effect of present value decay and the effect of changes in interest rates.  Ineffectiveness of hedging the 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 $409 thousand and $314 thousand for the quarters endedDecember 31, 2009 and 2008, respectively.  For the years ended December 31, 2009 and 2008, the impact was a net negative ineffectiveness of $22 thousand and a net positive ineffectiveness of $11.1 million, respectively.  The accompanying table shows that the MSR value increased $2.7 million for the quarter ended December 31, 2009 due to an increase in mortgage rates.  Offsetting the MSR change is a $2.3 million decrease in the value of derivative instruments primarily due to growth in 10-year Treasury note yields.

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

	Quarter Ended															Year Ended
	12/31/2009			9/30/2009			6/30/2009			3/31/2009			12/31/2008			12/31/2009			12/31/2008
Mortgage servicing income, net	$	3,763		$	4,092		$	4,029		$	4,001		$	4,188		$	15,885		$	15,741
Change in fair value-MSR from runoff		(1,219	)		(1,608	)		(3,097	)		(2,643	)		(2,101	)		(8,567	)		(8,986	)
Gain on sales of loans		3,738			4,081			8,932			4,004			473			20,755			5,968
Other, net		(139	)		179			(2,708	)		3,490			1,519			822			2,609
Mortgage banking income before hedge ineffectiveness		6,143			6,744			7,156			8,852			4,079			28,895			15,332
Change in fair value-MSR from market changes		2,710			(9,344	)		13,593			(352	)		(36,846	)		6,607			(34,838	)
Change in fair value of derivatives		(2,301	)		11,471			(18,206	)		2,407			37,160			(6,629	)		45,986
Net positive (negative) hedge ineffectiveness		409			2,127			(4,613	)		2,055			314			(22	)		11,148
Mortgage banking, net	$	6,552		$	8,871		$	2,543		$	10,907		$	4,393		$	28,873		$	26,480

During the fourth quarter, Trustmark completed the sale of approximately $1.0 billion in mortgages serviced for others, which reduced Trustmark’s MSR by approximately $9.6 million.   The effect of this transaction did not have a material impact on Trustmark's results of operations.

Note 7 – Non-GAAP Financial Measures

In addition to capital ratios defined by 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.

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. The following table reconciles Trustmark’s calculation of these measures to amounts reported under GAAP.  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 in their entirety and not to rely on any single financial measure.

  TRUSTMARK CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIALS December 31, 2009 ($ in thousands) (unaudited)

Note 7 - Non-GAAP Financial Measures (continued)
			Quarter Ended															Year Ended
			12/31/2009			9/30/2009			6/30/2009			3/31/2009			12/31/2008			12/31/2009			12/31/2008
TANGIBLE COMMON EQUITY
AVERAGE BALANCES
Total shareholders' equity			$	1,205,712		$	1,216,987		$	1,207,202		$	1,192,398		$	1,056,052		$	1,205,642		$	970,061
Less:	Preferred stock			(157,270	)		(206,308	)		(205,860	)		(205,417	)		(91,385	)		(193,616	)		(22,971	)
Total average common equity				1,048,442			1,010,679			1,001,342			986,981			964,667			1,012,026			947,090
Less:	Goodwill			(291,104	)		(291,104	)		(291,104	)		(291,104	)		(291,123	)		(291,104	)		(291,153	)
	Identifiable intangible assets			(20,426	)		(21,430	)		(22,424	)		(23,440	)		(24,466	)		(21,920	)		(26,069	)
Total average tangible common equity			$	736,912		$	698,145		$	687,814		$	672,437		$	649,078		$	699,002		$	629,868
PERIOD END BALANCES
Total shareholders' equity			$	1,110,060		$	1,221,361		$	1,202,114		$	1,200,368		$	1,178,466
Less:	Preferred stock			-			(206,461	)		(206,009	)		(205,564	)		(205,126	)
Total common equity				1,110,060			1,014,900			996,105			994,804			973,340
Less:	Goodwill			(291,104	)		(291,104	)		(291,104	)		(291,104	)		(291,104	)
	Identifiable intangible assets			(19,825	)		(20,819	)		(21,820	)		(22,820	)		(23,821	)
Total tangible common equity		(a)	$	799,131		$	702,977		$	683,181		$	680,880		$	658,415
TANGIBLE ASSETS
Total assets			$	9,526,018		$	9,368,498		$	9,626,870		$	9,775,714		$	9,790,909
Less:	Goodwill			(291,104	)		(291,104	)		(291,104	)		(291,104	)		(291,104	)
	Identifiable intangible assets			(19,825	)		(20,819	)		(21,820	)		(22,820	)		(23,821	)
Total tangible assets		(b)	$	9,215,089		$	9,056,575		$	9,313,946		$	9,461,790		$	9,475,984
Risk-weighted assets		(c)	$	6,918,802		$	6,923,907		$	7,144,278		$	7,216,846		$	7,294,633
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income available to common shareholders			$	13,877		$	22,370		$	13,443		$	23,359		$	23,979		$	73,049		$	91,064
Plus:	Intangible amortization net of tax			614			619			618			618			658			2,469			2,644
Net income adjusted for intangible amortization			$	14,491		$	22,989		$	14,061		$	23,977		$	24,637		$	75,518		$	93,708
Period end common shares outstanding		(d)		63,673,839			57,440,047			57,423,841			57,378,318			57,324,737
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible common equity 1				7.80	%		13.06	%		8.20	%		14.46	%		15.10	%		10.80	%		14.88	%
Tangible common equity/tangible assets		(a)/(b)		8.67	%		7.76	%		7.34	%		7.20	%		6.95	%
Tangible common equity/risk-weighted assets		(a)/(c)		11.55	%		10.15	%		9.56	%		9.43	%		9.03	%
Tangible common book value		(a)/(d)*1,000	$	12.55		$	12.24		$	11.90		$	11.87		$	11.49
TIER 1 COMMON RISK-BASED CAPITAL
Total shareholders' equity			$	1,110,060		$	1,221,361		$	1,202,114		$	1,200,368		$	1,178,466
Eliminate qualifying AOCI				1,624			(3,072	)		5,395			5,097			14,717
Qualifying tier 1 capital				68,000			68,000			68,000			68,000			68,000
Disallowed goodwill				(291,104	)		(291,104	)		(291,104	)		(291,104	)		(291,104	)
Adj to goodwill allowed for deferred taxes				8,805			8,453			8,100			7,748			7,395
Other disallowed intangibles				(19,825	)		(20,819	)		(21,820	)		(22,820	)		(23,821	)
Disallowed servicing intangible				(5,051	)		(5,604	)		(6,331	)		(4,526	)		(4,288	)
Total tier 1 capital			$	872,509		$	977,215		$	964,354		$	962,763		$	949,365
Less:	Qualifying tier 1 capital			(68,000	)		(68,000	)		(68,000	)		(68,000	)		(68,000	)
	Preferred stock			-			(206,461	)		(206,009	)		(205,564	)		(205,126	)
Total tier 1 common capital		(e)	$	804,509		$	702,754		$	690,345		$	689,199		$	676,239
Tier 1 common risk-based capital ratio		(e)/(c)		11.63	%		10.15	%		9.66	%		9.55	%		9.27	%
1Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible common equity