Trustmark Corporation Announces Third Quarter 2008 Financial Results and Declares $0.23 Quarterly Cash Dividend

Trustmark Corporation (NASDAQ:TRMK) announced net income of $23.4 million in the third quarter of 2008, which represented basic earnings per share of $0.41. Trustmark’s third quarter 2008 net income produced returns on average tangible equity and average assets of 15.16% and 1.02%, respectively. During the first nine months of 2008, Trustmark’s net income totaled $67.1 million, which represented basic earnings per share of $1.17. Trustmark’s performance during this period resulted in returns on average tangible equity and average assets of 14.80% and 0.99%, respectively. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per common share. The dividend is payable December 15, 2008, to shareholders of record on December 1, 2008.

Richard G. Hickson, Chairman and CEO, stated, "Earnings during the quarter reflect the core operating strength of Trustmark. Results include enhanced capital strength, an expanded net interest margin, a lower provision for loan losses and disciplined expense management. These are very significant accomplishments in light of volatile financial markets and continuing economic uncertainty. While the magnitude and duration of the economic slowdown remains unknown, Trustmark’s strong capital position, solid balance sheet and over a century of experience have well positioned us to successfully address the challenges confronting the banking industry.”

Credit Quality

• Nonperforming assets increased $19.6 million, representing 1.99% of total loans and other real estate
• Net charge-offs declined to $10.2 million, or 0.58% of average loans
• Provision for loan losses totaled $14.5 million

During the third quarter, Trustmark’s nonaccrual loans increased $10.0 million primarily due to a single energy-related credit in the Corporation’s Houston, Texas market. This exposure is well secured, appropriately reserved, and no additional write-downs are anticipated. We continued to devote significant resources to managing credit risks resulting from the slowdown in residential real estate. Nonaccrual loans in Trustmark’s Florida and Mississippi markets were relatively unchanged when compared to the prior quarter while nonaccrual loans declined 23.1% in the Corporation’s Tennessee market. Total other real estate increased $9.6 million during the quarter, principally due to foreclosures in Florida.

Collectively, Trustmark’s nonperforming assets increased $19.6 million during the quarter to total $137.7 million, or 1.99% of total loans and other real estate, as of September 30, 2008. Net charge-offs were $10.2 million in the third quarter of 2008 compared to $26.3 million in the prior quarter. The provision for loan losses in the third quarter totaled $14.5 million compared to $31.0 million in the prior quarter. Allocation of Trustmark’s $90.9 million allowance for loan losses represented 1.76% of commercial loans and 0.64% of consumer and home mortgage loans, resulting in an allowance to total loans of 1.35%.

Enhanced Capital Strength

• Internally generated tangible equity increased $45.9 million from prior year to $633.0 million
• Total risk-based capital expanded to 11.80%, exceeding "well-capitalized” standards
• Pursuing cost-effective capital investment from U.S. Treasury

The current economic and financial environments are significantly changing the landscape of the banking industry. In an effort to position Trustmark for continued success in this challenging environment, we have evaluated the U.S. Treasury’s preferred stock investment initiative. Trustmark intends to apply for this cost-effective capital in an effort to take advantage of growth and expansion opportunities that may arise as well as to reinforce our strong capital position.

Net Interest Margin Expanded to 4.01%

• Security yields increased
• Lower funding costs effectively offset lower loan yields

Average loans declined $153.2 million during the third quarter relative to the prior period as a result of Trustmark’s continuing strategy to reduce real estate construction, residential mortgage and auto loan exposure. Average investment securities increased $53.2 million during the quarter as a positively sloped yield curve created an opportunity to enhance future net interest income. Declining funding costs more than offset lower yields on earning assets, resulting in a 10 basis point increase in the net interest margin to 4.01%.

Disciplined Expense Management

• Salary and benefit expense remained well controlled
• Increased deposit insurance expense
• Efficiency ratio of 58.85%

In the third quarter of 2008, noninterest expense totaled $72.7 million, an increase of $3.1 million relative to the prior quarter. Deposit insurance expense increased $1.0 million as credits granted in connection with a new deposit assessment system were fully utilized during the quarter. Loan and foreclosure expenses increased $1.2 million. Excluding these increased insurance and loan expenses, noninterest expense during the third quarter increased $900 thousand. Ongoing human capital management initiatives and continued awareness of expense management across the organization are reflected in the Corporation’s efficiency ratio of 58.85% during the third quarter. Trustmark remains committed to identifying additional reengineering and efficiency opportunities to enhance shareholder value.

ADDITIONAL INFORMATION

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, October 29 at 10:00 a.m. Central Time to discuss the Corporation’s financial results. Interested parties may listen to the conference call by dialing (877) 397-0300, passcode 4275653 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com. A replay of the conference call will also be available through Wednesday, November 5, 2008 in archived format at the same web address or by calling (888) 203-1112, passcode 4275653.

Trustmark is a financial services company providing banking and financial solutions through over 150 offices and 2,600 associates in Florida, Mississippi, Tennessee and Texas.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document are not statements of historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

These risks could cause actual results to differ materially from current expectations of Management and include, but are not limited to, changes in the level of nonperforming assets and charge-offs, local, state and national economic and market conditions, including the extent and duration of current volatility in the credit and financial markets, material changes in market interest rates, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, changes in existing regulations or the adoption of new regulations, natural disasters, acts of war or terrorism, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of Trustmark’s borrowers, the ability to control expenses, changes in Trustmark’s compensation and benefit plans, greater than expected costs or difficulties related to the integration of new products and lines of business and other risks described in Trustmark’s filings with the Securities and Exchange Commission.

Although Management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Trustmark undertakes no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
September 30, 2008
($ in thousands except per share data)
(unaudited)
									Linked Quarter
QUARTERLY AVERAGE BALANCES			9/30/2008			6/30/2008			$ Change			% Change
Securities AFS-taxable			$ 822,995			$ 769,790			$ 53,205			6.9	%
Securities AFS-nontaxable			39,886			35,869			4,017			11.2	%
Securities HTM-taxable			184,001			186,047			(2,046	)		-1.1	%
Securities HTM-nontaxable			74,937			76,940			(2,003	)		-2.6	%
Total securities			1,121,819			1,068,646			53,173			5.0	%
Loans (including loans held for sale)			6,927,270			7,080,495			(153,225	)		-2.2	%
Fed funds sold and rev repos			17,401			30,567			(13,166	)		-43.1	%
Other earning assets			37,323			41,481			(4,158	)		-10.0	%
Total earning assets			8,103,813			8,221,189			(117,376	)		-1.4	%
Allowance for loan losses			(88,643	)		(82,962	)		(5,681	)		6.8	%
Cash and due from banks			246,515			253,545			(7,030	)		-2.8	%
Other assets			810,449			782,986			27,463			3.5	%
Total assets			$ 9,072,134			$ 9,174,758			$ (102,624	)		-1.1	%
Interest-bearing demand deposits			$ 1,222,087			$ 1,258,281			$ (36,194	)		-2.9	%
Savings deposits			1,774,188			1,867,438			(93,250	)		-5.0	%
Time deposits less than $100,000			1,532,630			1,568,802			(36,172	)		-2.3	%
Time deposits of $100,000 or more			1,108,677			1,051,716			56,961			5.4	%
Total interest-bearing deposits			5,637,582			5,746,237			(108,655	)		-1.9	%
Fed funds purchased and repos			659,312			618,227			41,085			6.6	%
Short-term borrowings			156,880			202,778			(45,898	)		-22.6	%
Subordinated notes			49,728			49,720			8			0.0	%
Junior subordinated debt securities			70,104			70,104			-			0.0	%
Total interest-bearing liabilities			6,573,606			6,687,066			(113,460	)		-1.7	%
Noninterest-bearing deposits			1,415,402			1,409,371			6,031			0.4	%
Other liabilities			136,229			134,237			1,992			1.5	%
Shareholders' equity			946,897			944,084			2,813			0.3	%
Total liabilities and equity			$ 9,072,134			$ 9,174,758			$ (102,624	)		-1.1	%
n/m - percentage changes greater than +/- 100% are considered not meaningful
									Year over Year
QUARTERLY AVERAGE BALANCES			9/30/2008			9/30/2007			$ Change			% Change
Securities AFS-taxable			$ 822,995			$ 525,858			$ 297,137			56.5	%
Securities AFS-nontaxable			39,886			48,818			(8,932	)		-18.3	%
Securities HTM-taxable			184,001			194,356			(10,355	)		-5.3	%
Securities HTM-nontaxable			74,937			84,767			(9,830	)		-11.6	%
Total securities			1,121,819			853,799			268,020			31.4	%
Loans (including loans held for sale)			6,927,270			6,970,434			(43,164	)		-0.6	%
Fed funds sold and rev repos			17,401			30,201			(12,800	)		-42.4	%
Other earning assets			37,323			33,341			3,982			11.9	%
Total earning assets			8,103,813			7,887,775			216,038			2.7	%
Allowance for loan losses			(88,643	)		(70,950	)		(17,693	)		24.9	%
Cash and due from banks			246,515			260,997			(14,482	)		-5.5	%
Other assets			810,449			759,626			50,823			6.7	%
Total assets			$ 9,072,134			$ 8,837,448			$ 234,686			2.7	%
Interest-bearing demand deposits			$ 1,222,087			$ 1,166,548			$ 55,539			4.8	%
Savings deposits			1,774,188			1,671,993			102,195			6.1	%
Time deposits less than $100,000			1,532,630			1,575,320			(42,690	)		-2.7	%
Time deposits of $100,000 or more			1,108,677			1,037,785			70,892			6.8	%
Total interest-bearing deposits			5,637,582			5,451,646			185,936			3.4	%
Fed funds purchased and repos			659,312			491,488			167,824			34.1	%
Short-term borrowings			156,880			314,264			(157,384	)		-50.1	%
Subordinated notes			49,728			49,696			32			0.1	%
Junior subordinated debt securities			70,104			70,104			-			0.0	%
Total interest-bearing liabilities			6,573,606			6,377,198			196,408			3.1	%
Noninterest-bearing deposits			1,415,402			1,423,745			(8,343	)		-0.6	%
Other liabilities			136,229			135,469			760			0.6	%
Shareholders' equity			946,897			901,036			45,861			5.1	%
Total liabilities and equity			$ 9,072,134			$ 8,837,448			$ 234,686			2.7	%
									Linked Quarter
PERIOD END BALANCES			9/30/2008			6/30/2008			$ Change			% Change
Cash and due from banks			$ 235,016			$ 296,628			$ (61,612	)		-20.8	%
Fed funds sold and rev repos			14,782			23,901			(9,119	)		-38.2	%
Securities available for sale			907,629			908,949			(1,320	)		-0.1	%
Securities held to maturity			256,323			260,741			(4,418	)		-1.7	%
Loans held for sale			154,162			184,858			(30,696	)		-16.6	%
Loans			6,740,730			6,859,375			(118,645	)		-1.7	%
Allowance for loan losses			(90,888	)		(86,576	)		(4,312	)		5.0	%
Net Loans			6,649,842			6,772,799			(122,957	)		-1.8	%
Premises and equipment, net			156,298			154,026			2,272			1.5	%
Mortgage servicing rights			78,550			76,209			2,341			3.1	%
Goodwill			291,145			291,145			-			0.0	%
Identifiable intangible assets			24,887			25,958			(1,071	)		-4.1	%
Other assets			317,639			319,835			(2,196	)		-0.7	%
Total assets			$ 9,086,273			$ 9,315,049			$ (228,776	)		-2.5	%
Deposits:
Noninterest-bearing			$ 1,526,374			$ 1,443,553			$ 82,821			5.7	%
Interest-bearing			5,411,304			5,680,130			(268,826	)		-4.7	%
Total deposits			6,937,678			7,123,683			(186,005	)		-2.6	%
Fed funds purchased and repos			592,818			748,137			(155,319	)		-20.8	%
Short-term borrowings			369,037			260,812			108,225			41.5	%
Subordinated notes			49,733			49,725			8			0.0	%
Junior subordinated debt securities			70,104			70,104			-			0.0	%
Other liabilities			117,905			126,703			(8,798	)		-6.9	%
Total liabilities			8,137,275			8,379,164			(241,889	)		-2.9	%
Common stock			11,944			11,938			6			0.1	%
Capital surplus			128,617			126,881			1,736			1.4	%
Retained earnings			824,768			814,674			10,094			1.2	%
Accum other comprehensive loss, net of tax
			(16,331	)		(17,608	)		1,277			-7.3	%
Total shareholders' equity			948,998			935,885			13,113			1.4	%
Total liabilities and equity			$ 9,086,273			$ 9,315,049			$ (228,776	)		-2.5	%
									Year over Year
PERIOD END BALANCES			9/30/2008			9/30/2007			$ Change			% Change
Cash and due from banks			$ 235,016			$ 306,107			$ (71,091	)		-23.2	%
Fed funds sold and rev repos			14,782			28,625			(13,843	)		-48.4	%
Securities available for sale			907,629			519,920			387,709			74.6	%
Securities held to maturity			256,323			278,385			(22,062	)		-7.9	%
Loans held for sale			154,162			133,693			20,469			15.3	%
Loans			6,740,730			6,917,541			(176,811	)		-2.6	%
Allowance for loan losses			(90,888	)		(72,368	)		(18,520	)		25.6	%
Net Loans			6,649,842			6,845,173			(195,331	)		-2.9	%
Premises and equipment, net			156,298			146,630			9,668			6.6	%
Mortgage servicing rights			78,550			73,253			5,297			7.2	%
Goodwill			291,145			291,177			(32	)		0.0	%
Identifiable intangible assets			24,887			29,313			(4,426	)		-15.1	%
Other assets			317,639			258,711			58,928			22.8	%
Total assets			$ 9,086,273			$ 8,910,987			$ 175,286			2.0	%
Deposits:
Noninterest-bearing			$ 1,526,374			$ 1,435,231			$ 91,143			6.4	%
Interest-bearing			5,411,304			5,467,221			(55,917	)		-1.0	%
Total deposits			6,937,678			6,902,452			35,226			0.5	%
Fed funds purchased and repos			592,818			525,142			67,676			12.9	%
Short-term borrowings			369,037			340,598			28,439			8.3	%
Subordinated notes			49,733			49,701			32			0.1	%
Junior subordinated debt securities			70,104			70,104			-			0.0	%
Other liabilities			117,905			115,453			2,452			2.1	%
Total liabilities			8,137,275			8,003,450			133,825			1.7	%
Common stock			11,944			11,933			11			0.1	%
Capital surplus			128,617			123,227			5,390			4.4	%
Retained earnings			824,768			787,356			37,412			4.8	%
Accum other comprehensive loss, net of tax						-
			(16,331	)		(14,979	)		(1,352	)		9.0	%
Total shareholders' equity			948,998			907,537			41,461			4.6	%
Total liabilities and equity			$ 9,086,273			$ 8,910,987			$ 175,286			2.0	%
			Quarter Ended						Linked Quarter
INCOME STATEMENTS			9/30/2008			6/30/2008			$ Change			% Change
Interest and fees on loans-FTE			$ 105,706			$ 109,023			$ (3,317	)		-3.0	%
Interest on securities-taxable			12,117			11,079			1,038			9.4	%
Interest on securities-tax exempt-FTE			1,946			1,943			3			0.2	%
Interest on fed funds sold and rev repos			98			168			(70	)		-41.7	%
Other interest income			407			475			(68	)		-14.3	%
Total interest income-FTE			120,274			122,688			(2,414	)		-2.0	%
Interest on deposits			32,860			36,881			(4,021	)		-10.9	%
Interest on fed funds pch and repos			3,123			3,019			104			3.4	%
Other interest expense			2,653			2,923			(270	)		-9.2	%
Total interest expense			38,636			42,823			(4,187	)		-9.8	%
Net interest income-FTE			81,638			79,865			1,773			2.2	%
Provision for loan losses			14,473			31,012			(16,539	)		-53.3	%
Net interest income after provision-FTE			67,165			48,853			18,312			37.5	%
Service charges on deposit accounts			13,886			13,223			663			5.0	%
Insurance commissions			9,007			8,394			613			7.3	%
Wealth management			6,788			7,031			(243	)		-3.5	%
General banking - other			5,813			6,053			(240	)		-4.0	%
Mortgage banking, net			4,323			6,708			(2,385	)		-35.6	%
Other, net			2,131			6,999			(4,868	)		-69.6	%
Nonint inc-excl sec gains, net			41,948			48,408			(6,460	)		-13.3	%
Security gains, net			2			58			(56	)		-96.6	%
Total noninterest income			41,950			48,466			(6,516	)		-13.4	%
Salaries and employee benefits			42,859			42,771			88			0.2	%
Services and fees			9,785			9,526			259			2.7	%
Net occupancy-premises			5,153			4,850			303			6.2	%
Equipment expense			4,231			4,144			87			2.1	%
Other expense			10,706			8,323			2,383			28.6	%
Total noninterest expense			72,734			69,614			3,120			4.5	%
Income before income taxes and tax eq adj			36,381			27,705			8,676			31.3	%
Tax equivalent adjustment			2,242			2,247			(5	)		-0.2	%
Income before income taxes			34,139			25,458			8,681			34.1	%
Income taxes			10,785			7,906			2,879			36.4	%
Net income			$ 23,354			$ 17,552			$ 5,802			33.1	%
			Quarter Ended						Linked Quarter
			9/30/2008			6/30/2008			$ Change			% Change
Per Share Data
Earnings per share - basic			$ 0.41			$ 0.31			$ 0.10			32.3	%
Earnings per share - diluted			$ 0.41			$ 0.31			$ 0.10			32.3	%
Dividends per share			$ 0.23			$ 0.23			$ -			0.0	%
Weighted average shares outstanding
Basic			57,298,710			57,296,449
Diluted			57,337,342			57,335,393
Period end shares outstanding			57,324,627			57,296,449
			Quarter Ended						Year over Year
INCOME STATEMENTS			9/30/2008			9/30/2007			$ Change			% Change
Interest and fees on loans-FTE			$ 105,706			$ 129,394			$ (23,688	)		-18.3	%
Interest on securities-taxable			12,117			7,181			4,936			68.7	%
Interest on securities-tax exempt-FTE			1,946			2,422			(476	)		-19.7	%
Interest on fed funds sold and rev repos			98			397			(299	)		-75.3	%
Other interest income			407			482			(75	)		-15.6	%
Total interest income-FTE			120,274			139,876			(19,602	)		-14.0	%
Interest on deposits			32,860		`	50,423			(17,563	)		-34.8	%
Interest on fed funds pch and repos			3,123			5,898			(2,775	)		-47.0	%
Other interest expense			2,653			6,186			(3,533	)		-57.1	%
Total interest expense			38,636			62,507			(23,871	)		-38.2	%
Net interest income-FTE			81,638			77,369			4,269			5.5	%
Provision for loan losses			14,473			4,999			9,474			n/m
Net interest income after provision-FTE			67,165			72,370			(5,205	)		-7.2	%
Service charges on deposit accounts			13,886			13,849			37			0.3	%
Insurance commissions			9,007			8,983			24			0.3	%
Wealth management			6,788			6,507			281			4.3	%
General banking - other			5,813			6,111			(298	)		-4.9	%
Mortgage banking, net			4,323			2,503			1,820			72.7	%
Other, net			2,131			3,593			(1,462	)		-40.7	%
Nonint inc-excl sec gains, net			41,948			41,546			402			1.0	%
Security gains, net			2			23			(21	)		-91.3	%
Total noninterest income			41,950			41,569			381			0.9	%
Salaries and employee benefits			42,859			42,257			602			1.4	%
Services and fees			9,785			9,285			500			5.4	%
Net occupancy-premises			5,153			4,753			400			8.4	%
Equipment expense			4,231			3,922			309			7.9	%
Other expense			10,706			8,271			2,435			29.4	%
Total noninterest expense			72,734			68,488			4,246			6.2	%
Income before income taxes and tax eq adj			36,381			45,451			(9,070	)		-20.0	%
Tax equivalent adjustment			2,242			2,283			(41	)		-1.8	%
Income before income taxes			34,139			43,168			(9,029	)		-20.9	%
Income taxes			10,785			14,087			(3,302	)		-23.4	%
Net income			$ 23,354			$ 29,081			$ (5,727	)		-19.7	%
			Quarter Ended						Year over Year
			9/30/2008			9/30/2007			$ Change			% Change
Per Share Data
Earnings per share - basic			$ 0.41			$ 0.51			$ (0.10	)		-19.6	%
Earnings per share - diluted			$ 0.41			$ 0.51			$ (0.10	)		-19.6	%
Dividends per share			$ 0.23			$ 0.22			$ 0.01			4.5	%
Weighted average shares outstanding
Basic			57,298,710			57,267,119
Diluted			57,337,342			57,526,573
Period end shares outstanding			57,324,627			57,272,408

			Quarter Ended
OTHER FINANCIAL DATA			9/30/2008			6/30/2008			9/30/2007
ROA			1.02	%		0.77	%		1.31	%
ROE			9.81	%		7.48	%		12.80	%
Return on average tangible equity			15.16	%		11.70	%		20.41	%
Interest margin - Yield - FTE			5.90	%		6.00	%		7.04	%
Interest margin - Cost - FTE			1.90	%		2.10	%		3.14	%
Net interest margin - FTE			4.01	%		3.91	%		3.89	%
Rate on interest-bearing liabilities			2.34	%		2.58	%		3.89	%
Efficiency ratio			58.85	%		56.64	%		57.98	%
EOP Employees - FTE			2,623			2,637			2,635
COMMON STOCK PERFORMANCE			9/30/2008			6/30/2008			9/30/2007
Market value-Close			$ 20.74			$ 17.65			$ 28.04
Book value			$ 16.55			$ 16.33			$ 15.85
Tangible book value			$ 11.04			$ 10.80			$ 10.25
Market/Book value			125.32	%		108.08	%		176.91	%
Market/Tangible book value			187.83	%		163.43	%		273.56	%
			Quarter Ended						Linked Quarter
NONPERFORMING ASSETS			9/30/2008			6/30/2008			$ Change			% Change
Nonaccrual loans
Florida			$ 71,125			$ 70,484			$ 641			0.9	%
Mississippi(1)			12,727			12,572			155			1.2	%
Tennessee(2)			4,012			5,216			(1,204	)		-23.1	%
Texas			17,418			7,039			10,379			n/m
Total nonaccrual loans			105,282			95,311			9,971			10.5	%
Other real estate
Florida			18,265			10,398			7,867			75.7	%
Mississippi(1)			6,062			5,258			804			15.3	%
Tennessee(2)			7,924			6,778			1,146			16.9	%
Texas			214			438			(224	)		-51.1	%
Total other real estate			32,465			22,872			9,593			41.9	%
Total nonperforming assets			$ 137,747			$ 118,183			$ 19,564			16.6	%
(1) - Mississippi includes Central and Southern Mississippi Regions
(2) - Tennessee includes Memphis, Tennessee and Northern Mississippi Regions
			Quarter Ended						Linked Quarter
LOANS PAST DUE OVER 90 DAYS			9/30/2008			6/30/2008			$ Change			% Change
Loans			$ 3,622			$ 3,056			$ 566			18.5	%
Loans HFS-Guaranteed GNMA serviced loans			20,332			15,809			4,523			28.6	%
Total loans past due over 90 days			$ 23,954			$ 18,865			$ 5,089			27.0	%
NONPERFORMING ASSETS			Quarter Ended						Year over Year
Nonaccrual loans			9/30/2008			9/30/2007			$ Change			% Change
Florida			$ 71,125			$ 19,536			$ 51,589			n/m
Mississippi(1)			12,727			16,641			(3,914	)		-23.5	%
Tennessee(2)			4,012			4,956			(944	)		-19.0	%
Texas			17,418			4,316			13,102			n/m
Total nonaccrual loans			105,282			45,449			59,833			n/m
Other real estate
Florida			18,265			1,175			17,090			n/m
Mississippi(1)			6,062			917			5,145			n/m
Tennessee(2)			7,924			3,726			4,198			n/m
Texas			214			52			162			n/m
Total other real estate			32,465			5,870			26,595			n/m
Total nonperforming assets			$ 137,747			$ 51,319			$ 86,428			n/m
			Quarter Ended						Year over Year
LOANS PAST DUE OVER 90 DAYS			9/30/2008			9/30/2007			$ Change			% Change
Loans			$ 3,622			$ 9,521			$ (5,899	)		-62.0	%
Loans HFS-Guaranteed GNMA serviced loans			20,332			9,539			10,793			n/m
Total loans past due over 90 days			$ 23,954			$ 19,060			$ 4,894			25.7	%
			Quarter Ended						Linked Quarter
ALLOWANCE FOR LOAN LOSSES			9/30/2008			6/30/2008			$ Change			% Change
Beginning Balance			$ 86,576			$ 81,818			$ 4,758			5.8	%
Provision for loan losses			14,473			31,012			(16,539	)		-53.3	%
Charge-offs			(12,732	)		(28,820	)		16,088			-55.8	%
Recoveries			2,571			2,566			5			0.2	%
Net charge-offs			(10,161	)		(26,254	)		16,093			-61.3	%
Ending Balance			$ 90,888			$ 86,576			$ 4,312			5.0	%
			Quarter Ended						Year over Year
ALLOWANCE FOR LOAN LOSSES			9/30/2008			9/30/2007			$ Change			% Change
Beginning Balance			$ 86,576			$ 70,948			$ 15,628			22.0	%
Provision for loan losses			14,473			4,999			9,474			n/m
Charge-offs			(12,732	)		(6,417	)		(6,315	)		98.4	%
Recoveries			2,571			2,838			(267	)		-9.4	%
Net charge-offs			(10,161	)		(3,579	)		(6,582	)		n/m
Ending Balance			$ 90,888			$ 72,368			$ 18,520			25.6	%
			Quarter Ended						Linked Quarter
PROVISION FOR LOAN LOSSES			9/30/2008			6/30/2008			$ Change			% Change
Florida			$ 3,167			$ 24,145			$ (20,978	)		-86.9	%
Mississippi(1)			8,476			3,667			4,809			n/m
Tennessee(2)			27			2,440			(2,413	)		-98.9	%
Texas			2,803			760			2,043			n/m
Total provision for loan losses			$ 14,473			$ 31,012			$ (16,539	)		-53.3	%
			Quarter Ended						Year over Year
PROVISION FOR LOAN LOSSES			9/30/2008			9/30/2007			$ Change			% Change
Florida			$ 3,167			$ 3,364			$ (197	)		-5.9	%
Mississippi(1)			8,476			(798	)		9,274			n/m
Tennessee(2)			27			1,153			(1,126	)		-97.7	%
Texas			2,803			1,280			1,523			n/m
Total provision for loan losses			$ 14,473			$ 4,999			$ 9,474			n/m
			Quarter Ended						Linked Quarter
NET CHARGE-OFFS			9/30/2008			6/30/2008			$ Change			% Change
Florida			$ 3,779			$ 22,064			$ (18,285	)		-82.9	%
Mississippi(1)			4,515			4,214			301			7.1	%
Tennessee(2)			1,291			48			1,243			n/m
Texas			576			(72	)		648			n/m
Total net charge-offs			$ 10,161			$ 26,254			$ (16,093	)		-61.3	%
			Quarter Ended						Year over Year
NET CHARGE-OFFS			9/30/2008			9/30/2007			$ Change			% Change
Florida			$ 3,779			$ 799			$ 2,980			n/m
Mississippi(1)			4,515			2,312			2,203			95.3	%
Tennessee(2)			1,291			166			1,125			n/m
Texas			576			302			274			90.7	%
Total net charge-offs			$ 10,161			$ 3,579			$ 6,582			n/m
			Quarter Ended
CREDIT QUALITY RATIOS			9/30/2008			6/30/2008			9/30/2007
Net charge offs/average loans			0.58	%		1.49	%		0.20	%
Provision for loan losses/average loans			0.83	%		1.76	%		0.28	%
Nonperforming loans/total loans (incl LHFS)			1.53	%		1.35	%		0.64	%
Nonperforming assets/total loans (incl LHFS)			2.00	%		1.68	%		0.73	%
Nonperforming assets/total loans (incl LHFS) +ORE			1.99	%		1.67	%		0.73	%
ALL/total loans (excl LHFS)			1.35	%		1.26	%		1.05	%
ALL-commercial/total commercial loans			1.76	%		1.67	%		1.36	%
ALL-consumer/total consumer and home mortgage loans			0.64	%		0.60	%		0.58	%
ALL/nonperforming loans			86.33	%		90.84	%		159.23	%
			Quarter Ended
CAPITAL RATIOS			9/30/2008			6/30/2008			9/30/2007
EOP equity/ EOP assets			10.44	%		10.05	%		10.18	%
Average equity/average assets			10.44	%		10.29	%		10.20	%
EOP tangible equity/EOP tangible assets			7.22	%		6.88	%		6.83	%
Tier 1 leverage ratio			8.11	%		7.87	%		7.79	%
Tier 1 risk-based capital ratio			9.86	%		9.58	%		9.20	%
Total risk-based capital ratio			11.80	%		11.46	%		10.89	%
			Quarter Ended
QUARTERLY AVERAGE BALANCES			9/30/2008			6/30/2008			3/31/2008
Securities AFS-taxable			$ 822,995			$ 769,790			$ 353,079
Securities AFS-nontaxable			39,886			35,869			36,241
Securities HTM-taxable			184,001			186,047			189,604
Securities HTM-nontaxable			74,937			76,940			81,559
Total securities			1,121,819			1,068,646			660,483
Loans (including loans held for sale)			6,927,270			7,080,495			7,177,233
Fed funds sold and rev repos			17,401			30,567			22,921
Other earning assets			37,323			41,481			36,958
Total earning assets			8,103,813			8,221,189			7,897,595
Allowance for loan losses			(88,643	)		(82,962	)		(80,998	)
Cash and due from banks			246,515			253,545			259,392
Other assets			810,449			782,986			775,722
Total assets			$ 9,072,134			$ 9,174,758			$ 8,851,711
Interest-bearing demand deposits			$ 1,222,087			$ 1,258,281			$ 1,233,892
Savings deposits			1,774,188			1,867,438			1,755,048
Time deposits less than $100,000			1,532,630			1,568,802			1,577,753
Time deposits of $100,000 or more			1,108,677			1,051,716			1,030,527
Total interest-bearing deposits			5,637,582			5,746,237			5,597,220
Fed funds purchased and repos			659,312			618,227			417,338
Short-term borrowings			156,880			202,778			252,234
Subordinated notes			49,728			49,720			49,712
Junior subordinated debt securities			70,104			70,104			70,104
Total interest-bearing liabilities			6,573,606			6,687,066			6,386,608
Noninterest-bearing deposits			1,415,402			1,409,371			1,390,843
Other liabilities			136,229			134,237			141,741
Shareholders' equity			946,897			944,084			932,519
Total liabilities and equity			$ 9,072,134			$ 9,174,758			$ 8,851,711
						Quarter Ended
QUARTERLY AVERAGE BALANCES						12/31/2007			9/30/2007
Securities AFS-taxable						$ 435,438			$ 525,858
Securities AFS-nontaxable						46,898			48,818
Securities HTM-taxable						192,878			194,356
Securities HTM-nontaxable						82,963			84,767
Total securities						758,177			853,799
Loans (including loans held for sale)						7,149,243			6,970,434
Fed funds sold and rev repos						25,960			30,201
Other earning assets						41,368			33,341