Note 7 – Other Real Estate, excluding Covered Other Real Estate

Other real estate, excluding covered other real estate owned, is recorded at the lower of cost or estimated fair value less the estimated cost of disposition. Fair value is based on independent appraisals and other relevant factors. Valuation adjustments required at foreclosure are charged to the allowance for loan losses. At September 30, 2011, Trustmark's geographic loan distribution was concentrated primarily in its Florida, Mississippi, Tennessee and Texas markets. The ultimate recovery of a substantial portion of the carrying amount of noncovered other real estate owned is susceptible to changes in market conditions in these areas.

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

	Nine Months Ended September 30,
	2011			2010
Balance at beginning of period	$	86,704		$	90,095
Additions		48,975			51,213
Disposals		(35,234	)		(41,322	)
Writedowns		(10,848	)		(15,264	)
Balance at end of period	$	89,597		$	84,722

Gain (Loss), net on the sale of noncovered other real estate included in other expenses	$	474		$	(401	)

Other real estate, excluding covered other real estate, by type of property consisted of the following for the periods presented ($ in thousands):

	September 30,		December 31,
	2011		2010
Construction, land development and other land loans	$	63,756	$	61,963
1-4 family residential properties		12,716		13,509
Nonfarm, nonresidential properties		12,123		9,820
Other real estate loans		1,002		1,412
Total other real estate, excluding covered other real estate	$	89,597	$	86,704

Other real estate, excluding covered other real estate, by geographic location consisted of the following for the periods presented ($ in thousands):

	September 30,		December 31,
	2011		2010
Florida	$	29,949	$	32,370
Mississippi (1)		21,027		24,181
Tennessee (2)		17,940		16,407
Texas		20,681		13,746
Total other real estate, excluding covered other real estate	$	89,597	$	86,704

(1) - Mississippi includes Central and Southern Mississippi Region
(2) - Tennessee includes Memphis, Tennessee and Northern Mississippi Region