Note 7 – Other Real Estate

At September 30, 2018, 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 (losses), net on other real estate were as follows ($ in thousands):

	Nine Months Ended September 30,
	2018			2017
Balance at beginning of period	$	43,228		$	62,051
Additions (1)		10,368			7,481
Disposals		(15,264	)		(18,583	)
Write-downs		(1,857	)		(2,593	)
Balance at end of period	$	36,475		$	48,356

Gains (losses), net on the sale of other real estate included in other real estate expense	$	1,226		$	1,722

(1)	Includes $475 thousand of other real estate acquired in the Reliance merger on April 7, 2017.

At September 30, 2018 and December 31, 2017, other real estate by type of property consisted of the following ($ in thousands):

	September 30, 2018		December 31, 2017
Construction, land development and other land properties	$	18,976	$	27,491
1-4 family residential properties		5,266		5,081
Nonfarm, nonresidential properties		12,050		10,468
Other real estate properties		183		188
Total other real estate	$	36,475	$	43,228

At September 30, 2018 and December 31, 2017, other real estate by geographic location consisted of the following ($ in thousands):

	September 30, 2018		December 31, 2017
Alabama	$	7,526	$	11,714
Florida		8,931		13,937
Mississippi (1)		18,191		14,260
Tennessee (2)		1,083		2,535
Texas		744		782
Total other real estate	$	36,475	$	43,228

(1)	Mississippi includes Central and Southern Mississippi Regions

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