Note 6 –Other Real Estate and Covered Other Real Estate

Other Real Estate, excluding Covered Other Real Estate

At March 31, 2016, Trustmark’s geographic other real estate distribution was concentrated primarily in its five key market regions: Alabama, Florida, Mississippi, Tennessee and Texas. The ultimate recovery of a substantial portion of the carrying amount of other real estate, excluding covered other real estate, is susceptible to changes in market conditions in these areas.

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

	Three Months Ended March 31,
	2016			2015
Balance at beginning of period	$	77,177		$	92,509
Additions		3,306			8,656
Disposals		(7,537	)		(10,108	)
Write-downs		(1,140	)		(882	)
Balance at end of period	$	71,806		$	90,175

Gain, net on the sale of other real estate included in ORE/Foreclosure expense	$	1,812		$	1,420

At March 31, 2016 and December 31, 2015, other real estate, excluding covered other real estate, by type of property consisted of the following ($ in thousands):

	March 31, 2016		December 31, 2015
Construction, land development and other land properties	$	44,405	$	47,550
1-4 family residential properties		8,576		10,732
Nonfarm, nonresidential properties		16,732		16,717
Other real estate properties		2,093		2,178
Total other real estate, excluding covered other real estate	$	71,806	$	77,177

At March 31, 2016 and December 31, 2015, other real estate, excluding covered other real estate, by geographic location consisted of the following ($ in thousands):

	March 31, 2016		December 31, 2015
Alabama	$	19,137	$	21,578
Florida		27,907		29,579
Mississippi (1)		14,511		14,312
Tennessee (2)		8,699		9,974
Texas		1,552		1,734
Total other real estate, excluding covered other real estate	$	71,806	$	77,177

(1)	Mississippi includes Central and Southern Mississippi Regions

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

Covered Other Real Estate

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

	Three Months Ended March 31,
	2016			2015
Balance at beginning of period	$	1,651		$	6,060
Transfers from covered loans		302			—
FASB ASC 310-30 adjustment for the residual recorded investment		—			(903	)
Net transfers from covered loans		302			(903	)
Disposals		(1,457	)		(221	)
Write-downs		—			(142	)
Balance at end of period	$	496		$	4,794

Gain (loss), net on the sale of covered other real estate included in ORE/Foreclosure expense	$	56		$	(53	)

At March 31, 2016 and December 31, 2015, covered other real estate by type of property consisted of the following ($ in thousands):

	March 31, 2016		December 31, 2015
Construction, land development and other land properties	$	62	$	638
1-4 family residential properties		183		223
Nonfarm, nonresidential properties		251		399
Other real estate properties		—		391
Total covered other real estate	$	496	$	1,651