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Covered Loans, Covered Other Real Estate and FDIC Indemnification Asset (Tables)
 12 Months Ended
Dec. 31, 2011
Covered Loans, Covered Other Real Estate and FDIC Indemnification Asset [Abstract]  
Covered loans acquired, and activity within covered loans
The following table presents covered loans acquired as of the date of the Heritage acquisition and activity within covered loans during 2011 ($ in thousands):
 
At acquisition date:
   
Contractually required principal and interest
 $145,864 
Nonaccretable difference
  (38,345)
Cash flows expected to be collected
  107,519 
Accretable yield
  (13,579)
Other revolving loans
  3,830 
Fair value of covered loans at acquisition date
  97,770 
Activity during 2011:
    
Accretion to interest income (1)
  4,890 
Payments received
  (30,337)
Changes in expected cash flows
  4,481 
Less allowance for loan losses
  (502)
Carrying value at December 31, 2011
 $76,302 
 
(1) Includes $543 thousand of accretion for covered loans not accounted for under FASB ASC Topic 310-30.
 
At December 31, 2011, covered loans, which are substantially located in Mississippi, consisted of the following ($ in thousands):
 
Loans secured by real estate:
   
Construction, land development and other land loans
 $4,209 
Secured by 1-4 family residential properties
  31,874 
Secured by nonfarm, nonresidential properties
  30,889 
Other
  5,126 
Commercial and industrial loans
  2,971 
Consumer loans
  290 
Other loans
  1,445 
Covered loans
  76,804 
Less allowance for loan losses
  502 
Net covered loans
 $76,302 
 
Components of the Allowance for Loan Losses
The following table presents the components of the allowance for loan losses on covered loans acquired in the Heritage acquisition at December 31, 2011 ($ in thousands):
 
Provision for covered loan losses
 $624 
Loans charged-off
  (218)
Recoveries
  96 
Net charge-offs
  (122)
Balance at December 31, 2011
 $502 
Changes in accretable difference on covered loans acquired
The following table presents changes in the accretable yield on covered loans acquired in the Heritage acquisition during 2011 ($ in thousands):

Accretable yield acquired
 $(13,579)
Accretion to interest income
  4,347 
Change in expected cash flows
  (7,644)
Accretable yield at December 31, 2011
 $(16,876)
Changes and Gains (losses), net on covered other real estate
As of the date of the Heritage acquisition, Trustmark acquired $7.5 million in covered other real estate.  For the year ended December 31, 2011, changes and gains (losses), net on covered other real estate were as follows ($ in thousands):

   
2011
 
Other real estate at acquisition
 $7,485 
Transfers from covered loans
  632 
FASB ASC 310-30 adjustment for the residual recorded investment
  (264)
Net transfers from covered loans
  368 
Disposals
  (1,489)
Writedowns
  (33)
Balance at end of period
 $6,331 
      
Gain (loss), net on the sale of covered other real estate included in ORE/Foreclosure expenses
 $286 
 
Other real estate acquired which is covered under FDIC share-loss agreement
At December 31, 2011, covered other real estate consisted of the following types of properties ($ in thousands):
 
Construction, land development and other land properties
 $1,304 
1-4 family residential properties
  889 
Nonfarm, nonresidential properties
  4,022 
Other real estate properties
  116 
Total covered other real estate
 $6,331 
 
FDIC indemnification asset acquired
The following table presents the FDIC indemnification asset acquired as of the date of the Heritage acquisition and activity within the FDIC indemnification asset during 2011 ($ in thousands):
 
Indemnification asset at acquisition date
 $33,333 
Accretion
  185 
Loss-share payments received from FDIC
  (986)
Change in expected cash flows
  (4,157)
Change in FDIC true-up provision
  (27)
Carrying value at December 31, 2011
 $28,348