Note 10 – Other Real Estate

At December 31, 2017, 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 is susceptible to changes in market conditions in these areas.

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

	Years Ended December 31,
	2017			2016 (1)			2015 (1)
Balance at beginning of period	$	62,051		$	78,828		$	98,569
Additions (2)		9,235			24,525			32,782
Disposals		(24,762	)		(36,801	)		(48,352	)
Write-downs		(3,296	)		(4,501	)		(4,171	)
Balance at end of period	$	43,228		$	62,051		$	78,828

Gain, net on the sale of other real estate included in other real estate expense	$	2,087		$	7,031		$	4,041

(1)	The changes and gains, net on other real estate for the years ended December 31, 2016 and 2015 include covered other real estate.

(2)	For the year ended December 31, 2017, additions to other real estate included $475 thousand of other real estate acquired in the Reliance merger on April 7, 2017.

At December 31, 2017 and 2016, other real estate by type of property consisted of the following ($ in thousands):

	December 31,
	2017		2016
Construction, land development and other land properties	$	27,491	$	36,871
1-4 family residential properties		5,081		7,926
Nonfarm, nonresidential properties		10,468		16,817
Other real estate properties		188		437
Total other real estate	$	43,228	$	62,051

At December 31, 2017 and 2016, other real estate by geographic location consisted of the following ($ in thousands):

	December 31,
	2017		2016
Alabama	$	11,714	$	15,989
Florida		13,937		22,582
Mississippi (1)		14,260		15,646
Tennessee (2)		2,535		6,183
Texas		782		1,651
Total other real estate	$	43,228	$	62,051

(1)	Mississippi includes Central and Southern Mississippi Regions

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