Trustmark Corporation Announces Second Quarter 2008 Financial Results and Declares...

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

JACKSON, Miss.--(Business Wire)--
Trustmark Corporation (NASDAQ:TRMK) announced net income of $17.6
million in the second quarter of 2008, which represented basic
earnings per share of $0.31. Earnings during the quarter included a
gain on sale of MasterCard stock that increased net income by $3.3
million, or $0.058 per share. Trustmark's second quarter 2008 net
income produced returns on average tangible equity and average assets
of 11.70% and 0.77%, respectively. During the first six months of
2008, Trustmark's net income totaled $43.7 million, which represented
basic earnings per share of $0.76. Trustmark's performance during the
first half of 2008 resulted in returns on average tangible equity and
average assets of 14.61% and 0.98%, respectively. Trustmark's Board of
Directors declared a quarterly cash dividend of $0.23 per common
share. The dividend is payable September 15, 2008 to shareholders of
record on September 1, 2008.

Richard G. Hickson, Chairman and CEO, stated, "Trustmark produced
positive financial results during the second quarter as reflected by
growth in earning assets, reduced funding costs and a stable net
interest margin. We achieved sequential quarter core revenue growth in
our general banking, mortgage banking and insurance businesses while
controlling noninterest expense, further reinforcing our ability to
manage through a challenging environment. We continued to devote
significant resources to managing credit risks resulting from the
slowdown in residential real estate. While the duration of the
economic slowdown is uncertain, we have fundamentally strong core
earnings throughout our diversified financial businesses and are well
positioned to face the challenges confronting the banking industry."

Credit Quality

-- Conducted extensive reviews and updated appraisals of Florida
construction portfolio

-- Nonperforming assets increased $30.6 million, representing
1.67% of total loans and other real estate

-- Net charge-offs totaled $26.3 million

-- Provision for loan losses totaled $31.0 million

During the second quarter, Trustmark conducted extensive reviews
of the Corporation's $321.9 million construction and land development
portfolio in Florida. In addition to obtaining current financial
information on borrowers and guarantors, updated property appraisals
were obtained on a substantial portion of this portfolio. Through this
review and appraisal process, $21.0 million in loans were charged-off
based upon current property values in the marketplace. Of the $321.9
million in Florida construction and land development loans,
approximately $96.6 million have been classified and reserved for at
appropriate levels, including $42.4 million of impaired loans that
have been written down to net realizable value. Trustmark believes
that this portfolio is appropriately risk rated and adequately
reserved based upon current conditions. Trustmark's Mississippi,
Tennessee and Texas loan portfolios continued to perform relatively
well in the current economic environment.

Trustmark's nonperforming assets totaled $118.2 million at June
30, 2008, up $30.6 million relative to the prior quarter, to represent
1.67% of total loans and other real estate. Net charge-offs were $26.3
million in the second quarter of 2008 compared to $12.3 million in the
prior quarter. The provision for loan losses in the second quarter
totaled $31.0 million compared to $14.2 million in the prior quarter.
Allocation of Trustmark's $86.6 million allowance for loan losses
represented 1.67% of commercial loans and 0.60% of consumer and home
mortgage loans, resulting in an allowance to total loans of 1.26%.

Capital Strength

-- Internally generated tangible equity increased $54.0 million
from prior year

-- Total risk-based capital expanded to 11.46% at June 30, 2008

Tangible equity totaled $618.8 million at June 30, 2008, up $54.0
million from the prior year while total risk-based capital was 11.46%,
exceeding "well-capitalized" standards. Continued preservation and
growth of capital will afford Trustmark the ability to respond to
opportunities in the marketplace. Based upon the existing capital base
and continued ability to generate excess capital going forward,
Trustmark is confident at this time in the sustainability of its cash
dividend. In addition, Trustmark is not contemplating any capital
raising transactions.

Net Interest Margin Maintained at 3.91%

-- Increased security yields and lower deposit and borrowing
costs offset by decreased loan yields

Average loans declined $96.7 million during the second quarter
relative to the prior period substantially as a result of our strategy
to reduce real estate construction and auto loan exposure. Average
investment securities increased $408.2 million during the quarter as a
positively sloped yield curve created an opportunity to enhance future
net interest income. Trustmark's funding mix improved as average
deposits increased $167.5 million during the quarter while short-term
borrowings expanded $151.4 million. Lower deposit and borrowing costs
were effectively offset by lower yield on earning assets. As a result,
a net interest margin of 3.91% was maintained during the second
quarter.

Mortgage Banking

-- Mortgage production increased 8.7% from prior quarter

Mortgage production totaled $413 million during the second quarter
of 2008, an increase of 8.7% from the prior quarter. Growth in volume,
coupled with improved spreads and fees, positively impacted net
interest income. Noninterest income in Trustmark's Mortgage Banking
division included $2.7 million resulting from a successful mortgage
servicing rights hedging strategy.

Trustmark's highly regarded mortgage banking reputation has
enabled it to take advantage of competitive disruptions and expand
market share. Because Trustmark is not a subprime lender, the home
mortgage and home equity loan portfolios continued to perform well.

Disciplined Expense Management and Investments for the Future

-- Noninterest expense remained below $70 million target for
fifth consecutive quarter

-- Efficiency ratio of 56.6%

-- Five new banking centers opened thus far in 2008

In the second quarter of 2008, noninterest expense totaled $69.6
million, marking the fifth consecutive quarter below the Corporation's
$70 million target. Success in this regard is due to ongoing human
capital management programs as well as a heightened awareness of
expense management across the organization and is reflected in an
efficiency ratio of 56.6%. Trustmark is committed to identifying
additional reengineering and efficiency opportunities to enhance
shareholder value.

Trustmark continued to make investments to support revenue growth
and profitability as well as reallocate resources to areas with
additional growth potential. Thus far in 2008, Trustmark opened a
total of five new banking centers in the Biloxi, Panama City, Houston
and Memphis markets while closing two offices with limited growth
opportunities. An additional banking center is scheduled to open later
this year in Jackson.

ADDITIONAL INFORMATION

As previously announced, Trustmark will conduct a conference call
with analysts on Wednesday, July 23 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
6141473 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, July 30 in
archived format at the same web address or by calling (888) 203-1112,
passcode 6141473.

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, 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.

-0-
*T
TRUSTMARK CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL INFORMATION
June 30, 2008
($ in thousands except per
share data)
(unaudited)

Linked Quarter
------------------
QUARTERLY AVERAGE BALANCES 6/30/2008 3/31/2008 $ Change % Change
--------------------------- ----------- ----------- --------- --------
Securities AFS-taxable $ 769,790 $ 353,079 $416,711 n/m
Securities AFS-nontaxable 35,869 36,241 (372) -1.0%
Securities HTM-taxable 186,047 189,604 (3,557) -1.9%
Securities HTM-nontaxable 76,940 81,559 (4,619) -5.7%
----------- ----------- ---------
Total securities 1,068,646 660,483 408,163 61.8%
----------- ----------- ---------
Loans (including loans held
for sale) 7,080,495 7,177,233 (96,738) -1.3%
Fed funds sold and rev
repos 30,567 22,921 7,646 33.4%
Other earning assets 41,481 36,958 4,523 12.2%
----------- ----------- ---------
Total earning assets 8,221,189 7,897,595 323,594 4.1%
----------- ----------- ---------
Allowance for loan losses (82,962) (80,998) (1,964) 2.4%
Cash and due from banks 253,545 259,392 (5,847) -2.3%
Other assets 782,986 775,722 7,264 0.9%
----------- ----------- ---------
Total assets $9,174,758 $8,851,711 $323,047 3.6%
=========== =========== =========

Interest-bearing demand
deposits $1,258,281 $1,233,892 $ 24,389 2.0%
Savings deposits 1,867,438 1,755,048 112,390 6.4%
Time deposits less than
$100,000 1,568,802 1,577,753 (8,951) -0.6%
Time deposits of $100,000
or more 1,051,716 1,030,527 21,189 2.1%
----------- ----------- ---------
Total interest-bearing
deposits 5,746,237 5,597,220 149,017 2.7%
Fed funds purchased and
repos 618,227 417,338 200,889 48.1%
Short-term borrowings 202,778 252,234 (49,456) -19.6%
Subordinated notes 49,720 49,712 8 0.0%
Junior subordinated debt
securities 70,104 70,104 - 0.0%
----------- ----------- ---------
Total interest-bearing
liabilities 6,687,066 6,386,608 300,458 4.7%
Noninterest-bearing
deposits 1,409,371 1,390,843 18,528 1.3%
Other liabilities 134,237 141,741 (7,504) -5.3%
Shareholders' equity 944,084 932,519 11,565 1.2%
----------- ----------- ---------
Total liabilities and
equity $9,174,758 $8,851,711 $323,047 3.6%
=========== =========== =========

n/m - percentage changes greater than +/- 100% are considered not
meaningful
*T

-0-
*T
Year over Year
------------------
QUARTERLY AVERAGE BALANCES 6/30/2008 6/30/2007 $ Change % Change
--------------------------- ----------- ----------- --------- --------
Securities AFS-taxable $ 769,790 $ 655,815 $113,975 17.4%
Securities AFS-nontaxable 35,869 52,627 (16,758) -31.8%
Securities HTM-taxable 186,047 196,424 (10,377) -5.3%
Securities HTM-nontaxable 76,940 86,491 (9,551) -11.0%
----------- ----------- ---------
Total securities 1,068,646 991,357 77,289 7.8%
----------- ----------- ---------
Loans (including loans held
for sale) 7,080,495 6,784,126 296,369 4.4%
Fed funds sold and rev
repos 30,567 33,811 (3,244) -9.6%
Other earning assets 41,481 35,033 6,448 18.4%
----------- ----------- ---------
Total earning assets 8,221,189 7,844,327 376,862 4.8%
----------- ----------- ---------
Allowance for loan losses (82,962) (72,400) (10,562) 14.6%
Cash and due from banks 253,545 285,424 (31,879) -11.2%
Other assets 782,986 748,306 34,680 4.6%
----------- ----------- ---------
Total assets $9,174,758 $8,805,657 $369,101 4.2%
=========== =========== =========

Interest-bearing demand
deposits $1,258,281 $1,224,450 $ 33,831 2.8%
Savings deposits 1,867,438 1,770,576 96,862 5.5%
Time deposits less than
$100,000 1,568,802 1,613,569 (44,767) -2.8%
Time deposits of $100,000
or more 1,051,716 1,007,157 44,559 4.4%
----------- ----------- ---------
Total interest-bearing
deposits 5,746,237 5,615,752 130,485 2.3%
Fed funds purchased and
repos 618,227 426,738 191,489 44.9%
Short-term borrowings 202,778 142,815 59,963 42.0%
Subordinated notes 49,720 49,688 32 0.1%
Junior subordinated debt
securities 70,104 70,104 - 0.0%
----------- ----------- ---------
Total interest-bearing
liabilities 6,687,066 6,305,097 381,969 6.1%
Noninterest-bearing
deposits 1,409,371 1,484,611 (75,240) -5.1%
Other liabilities 134,237 120,879 13,358 11.1%
Shareholders' equity 944,084 895,070 49,014 5.5%
----------- ----------- ---------
Total liabilities and
equity $9,174,758 $8,805,657 $369,101 4.2%
=========== =========== =========
*T

-0-
*T
Linked Quarter
-------------------
PERIOD END BALANCES 6/30/2008 3/31/2008 $ Change % Change
-------------------------- ----------- ----------- ---------- --------
Cash and due from banks $ 296,628 $ 290,200 $ 6,428 2.2%
Fed funds sold and rev
repos 23,901 16,022 7,879 49.2%
Securities available for
sale 908,949 585,746 323,203 55.2%
Securities held to
maturity 260,741 267,315 (6,574) -2.5%
Loans held for sale 184,858 198,245 (13,387) -6.8%
Loans 6,859,375 7,012,034 (152,659) -2.2%
Allowance for loan losses (86,576) (81,818) (4,758) 5.8%
----------- ----------- ----------
Net Loans 6,772,799 6,930,216 (157,417) -2.3%
Premises and equipment,
net 154,026 151,469 2,557 1.7%
Mortgage servicing rights 76,209 59,047 17,162 29.1%
Goodwill 291,145 291,210 (65) 0.0%
Identifiable intangible
assets 25,958 27,030 (1,072) -4.0%
Other assets 319,835 280,653 39,182 14.0%
----------- ----------- ----------
Total assets $9,315,049 $9,097,153 $ 217,896 2.4%
=========== =========== ==========

Deposits:
Noninterest-bearing $1,443,553 $1,475,976 $ (32,423) -2.2%
Interest-bearing 5,680,130 5,868,359 (188,229) -3.2%
----------- ----------- ----------
Total deposits 7,123,683 7,344,335 (220,652) -3.0%
Fed funds purchased and
repos 748,137 433,431 314,706 72.6%
Short-term borrowings 260,812 93,453 167,359 n/m
Subordinated notes 49,725 49,717 8 0.0%
Junior subordinated debt
securities 70,104 70,104 - 0.0%
Other liabilities 126,703 168,772 (42,069) -24.9%
----------- ----------- ----------
Total liabilities 8,379,164 8,159,812 219,352 2.7%
----------- ----------- ----------
Common stock 11,938 11,938 - 0.0%
Capital surplus 126,881 126,003 878 0.7%
Retained earnings 814,674 810,369 4,305 0.5%
Accum other comprehensive -
loss, net of tax (17,608) (10,969) (6,639) 60.5%
----------- ----------- ----------
Total shareholders'
equity 935,885 937,341 (1,456) -0.2%
----------- ----------- ----------
Total liabilities and
equity $9,315,049 $9,097,153 $ 217,896 2.4%
=========== =========== ==========
*T

-0-
*T
Year over Year
------------------
PERIOD END BALANCES 6/30/2008 6/30/2007 $ Change % Change
--------------------------- ----------- ----------- --------- --------
Cash and due from banks $ 296,628 $ 292,248 $ 4,380 1.5%
Fed funds sold and rev
repos 23,901 20,081 3,820 19.0%
Securities available for
sale 908,949 608,906 300,043 49.3%
Securities held to maturity 260,741 281,403 (20,662) -7.3%
Loans held for sale 184,858 132,588 52,270 39.4%
Loans 6,859,375 6,769,632 89,743 1.3%
Allowance for loan losses (86,576) (70,948) (15,628) 22.0%
----------- ----------- ---------
Net Loans 6,772,799 6,698,684 74,115 1.1%
Premises and equipment, net 154,026 144,263 9,763 6.8%
Mortgage servicing rights 76,209 76,955 (746) -1.0%
Goodwill 291,145 290,852 293 0.1%
Identifiable intangible
assets 25,958 30,528 (4,570) -15.0%
Other assets 319,835 252,259 67,576 26.8%
----------- ----------- ---------
Total assets $9,315,049 $8,828,767 $486,282 5.5%
=========== =========== =========

Deposits:
Noninterest-bearing $1,443,553 $1,505,821 $(62,268) -4.1%
Interest-bearing 5,680,130 5,563,364 116,766 2.1%
----------- ----------- ---------
Total deposits 7,123,683 7,069,185 54,498 0.8%
Fed funds purchased and
repos 748,137 503,442 244,695 48.6%
Short-term borrowings 260,812 138,529 122,283 88.3%
Subordinated notes 49,725 49,693 32 0.1%
Junior subordinated debt
securities 70,104 70,104 - 0.0%
Other liabilities 126,703 111,654 15,049 13.5%
----------- ----------- ---------
Total liabilities 8,379,164 7,942,607 436,557 5.5%
----------- ----------- ---------
Common stock 11,938 11,931 7 0.1%
Capital surplus 126,881 122,185 4,696 3.8%
Retained earnings 814,674 770,925 43,749 5.7%
Accum other comprehensive -
loss, net of tax (17,608) (18,881) 1,273 -6.7%
----------- ----------- ---------
Total shareholders'
equity 935,885 886,160 49,725 5.6%
----------- ----------- ---------
Total liabilities and
equity $9,315,049 $8,828,767 $486,282 5.5%
=========== =========== =========
*T

-0-
*T
Quarter Ended Linked Quarter
------------------- ------------------
INCOME STATEMENTS 6/30/2008 3/31/2008 $ Change % Change
------------------------------- --------- --------- --------- --------
Interest and fees on loans-FTE $ 109,023 $ 119,641 $(10,618) -8.9%
Interest on securities-taxable 11,079 5,857 5,222 89.2%
Interest on securities-tax
exempt-FTE 1,943 2,086 (143) -6.9%
Interest on fed funds sold and
rev repos 168 179 (11) -6.1%
Other interest income 475 572 (97) -17.0%
--------- --------- ---------
Total interest income-FTE 122,688 128,335 (5,647) -4.4%
--------- --------- ---------
Interest on deposits 36,881 43,363 (6,482) -14.9%
Interest on fed funds pch and
repos 3,019 3,073 (54) -1.8%
Other interest expense 2,923 4,829 (1,906) -39.5%
--------- --------- ---------
Total interest expense 42,823 51,265 (8,442) -16.5%
--------- --------- ---------
Net interest income-FTE 79,865 77,070 2,795 3.6%
Provision for loan losses 31,012 14,243 16,769 n/m
--------- --------- ---------
Net interest income after
provision-FTE 48,853 62,827 (13,974) -22.2%
--------- --------- ---------
Service charges on deposit
accounts 13,223 12,564 659 5.2%
Insurance commissions 8,394 8,256 138 1.7%
Wealth management 7,031 7,198 (167) -2.3%
General banking - other 6,053 5,788 265 4.6%
Mortgage banking, net 6,708 11,056 (4,348) -39.3%
Other, net 6,999 3,221 3,778 n/m
--------- --------- ---------
Nonint inc-excl sec gains,
net 48,408 48,083 325 0.7%
Security gains, net 58 433 (375) -86.6%
--------- --------- ---------
Total noninterest income 48,466 48,516 (50) -0.1%
--------- --------- ---------
Salaries and employee benefits 42,771 43,584 (813) -1.9%
Services and fees 9,526 9,430 96 1.0%
Net occupancy-premises 4,850 4,801 49 1.0%
Equipment expense 4,144 4,074 70 1.7%
Other expense 8,323 7,937 386 4.9%
--------- --------- ---------
Total noninterest expense 69,614 69,826 (212) -0.3%
--------- --------- ---------
Income before income taxes and
tax eq adj 27,705 41,517 (13,812) -33.3%
Tax equivalent adjustment 2,247 2,321 (74) -3.2%
--------- --------- ---------
Income before income taxes 25,458 39,196 (13,738) -35.0%
Income taxes 7,906 13,017 (5,111) -39.3%
--------- --------- ---------
Net income $ 17,552 $ 26,179 $ (8,627) -33.0%
========= ========= =========
*T

-0-
*T
Quarter Ended Linked Quarter
----------------------- -----------------
6/30/2008 3/31/2008 $ Change % Change
----------- ----------- -------- --------
Per Share Data
Earnings per share -
basic $ 0.31 $ 0.46 $ (0.15) -32.6%
=========== =========== ========

Earnings per share -
diluted $ 0.31 $ 0.46 $ (0.15) -32.6%
=========== =========== ========

Dividends per share $ 0.23 $ 0.23 $ - 0.0%
=========== =========== ========

Weighted average shares
outstanding
Basic 57,296,449 57,283,240
=========== ===========

Diluted 57,335,393 57,312,428
=========== ===========

Period end shares
outstanding 57,296,449 57,296,449
=========== ===========
*T

-0-
*T
Quarter Ended Year over Year
------------------- ------------------
INCOME STATEMENTS 6/30/2008 6/30/2007 $Change % Change
------------------------------- --------- --------- --------- --------
Interest and fees on loans-FTE $ 109,023 $ 124,224 $(15,201) -12.2%
Interest on securities-taxable 11,079 9,018 2,061 22.9%
Interest on securities-tax
exempt-FTE 1,943 2,536 (593) -23.4%
Interest on fed funds sold and
rev repos 168 457 (289) -63.2%
Other interest income 475 541 (66) -12.2%
--------- --------- ---------
Total interest income-FTE 122,688 136,776 (14,088) -10.3%
--------- --------- ---------
Interest on deposits 36,881` 51,686 (14,805) -28.6%
Interest on fed funds pch and
repos 3,019 5,014 (1,995) -39.8%
Other interest expense 2,923 3,937 (1,014) -25.8%
--------- --------- ---------
Total interest expense 42,823 60,637 (17,814) -29.4%
--------- --------- ---------
Net interest income-FTE 79,865 76,139 3,726 4.9%
Provision for loan losses 31,012 145 30,867 n/m
--------- --------- ---------
Net interest income after
provision-FTE 48,853 75,994 (27,141) -35.7%
--------- --------- ---------
Service charges on deposit
accounts 13,223 13,729 (506) -3.7%
Insurance commissions 8,394 9,901 (1,507) -15.2%
Wealth management 7,031 6,400 631 9.9%
General banking - other 6,053 6,418 (365) -5.7%
Mortgage banking, net 6,708 1,799 4,909 n/m
Other, net 6,999 2,194 4,805 n/m
--------- --------- ---------
Nonint inc-excl sec gains,
net 48,408 40,441 7,967 19.7%
Security gains, net 58 29 29 n/m
--------- --------- ---------
Total noninterest income 48,466 40,470 7,996 19.8%
--------- --------- ---------
Salaries and employee benefits 42,771 42,853 (82) -0.2%
Services and fees 9,526 9,041 485 5.4%
Net occupancy-premises 4,850 4,634 216 4.7%
Equipment expense 4,144 4,048 96 2.4%
Other expense 8,323 8,257 66 0.8%
--------- --------- ---------
Total noninterest expense 69,614 68,833 781 1.1%
--------- --------- ---------
Income before income taxes and
tax eq adj 27,705 47,631 (19,926) -41.8%
Tax equivalent adjustment 2,247 2,307 (60) -2.6%
--------- --------- ---------
Income before income taxes 25,458 45,324 (19,866) -43.8%
Income taxes 7,906 15,496 (7,590) -49.0%
--------- --------- ---------
Net income $ 17,552 $ 29,828 $(12,276) -41.2%
========= ========= =========
*T

-0-
*T
Quarter Ended Year over Year
----------------------- -----------------
6/30/2008 6/30/2007 $ Change % Change
----------- ----------- -------- --------
Per Share Data
Earnings per share -
basic $ 0.31 $ 0.52 $(0.21) -40.4%
=========== =========== ========

Earnings per share -
diluted $ 0.31 $ 0.51 $(0.20) -39.2%
=========== =========== ========

Dividends per share $ 0.23 $ 0.22 $ 0.01 4.5%
=========== =========== ========

Weighted average shares
outstanding
Basic 57,296,449 57,807,447
=========== ===========

Diluted 57,335,393 58,025,401
=========== ===========

Period end shares
outstanding 57,296,449 57,264,283
=========== ===========
*T

-0-
*T
Quarter Ended
-----------------------------------
OTHER FINANCIAL DATA 6/30/2008 3/31/2008 6/30/2007
---------------------------------- ----------- ----------- -----------
ROA 0.77% 1.19% 1.36%
ROE 7.48% 11.29% 13.37%
Return on average tangible equity 11.70% 17.59% 21.38%
Interest margin - Yield - FTE 6.00% 6.54% 6.99%
Interest margin - Cost - FTE 2.10% 2.61% 3.10%
Net interest margin - FTE 3.91% 3.92% 3.89%
Rate on interest-bearing
liabilities 2.58% 3.23% 3.86%
Efficiency ratio 56.64% 56.64% 59.04%
EOP Employees - FTE 2,637 2,627 2,694

COMMON STOCK PERFORMANCE 6/30/2008 3/31/2008 6/30/2007
---------------------------------- ----------- ----------- -----------
Market value-Close $ 17.65 $ 22.28 $ 25.86
Book value $ 16.33 $ 16.36 $ 15.47
Tangible book value $ 10.80 $ 10.81 $ 9.86
Market/Book value 108.08% 136.19% 167.16%
Market/Tangible book value 163.43% 206.20% 262.20%
*T

-0-
*T
NONPERFORMING ASSETS Quarter Ended Linked Quarter
-------------------------------- ------------------- -----------------
Nonaccrual loans 6/30/2008 3/31/2008 $ Change % Change
--------- --------- -------- --------
Florida $ 70,484 $ 49,654 $20,830 42.0%
Mississippi (1) 12,572 14,583 (2,011) -13.8%
Tennessee (2) 5,216 6,550 (1,334) -20.4%
Texas 7,039 7,207 (168) -2.3%
--------- --------- --------
Total nonaccrual loans 95,311 77,994 17,317 22.2%
Other real estate
Florida 10,398 1,067 9,331 n/m
Mississippi (1) 5,258 1,741 3,517 n/m
Tennessee (2) 6,778 6,634 144 2.2%
Texas 438 146 292 n/m
--------- --------- --------
Total other real estate 22,872 9,588 13,284 n/m
--------- --------- --------
Total nonperforming
assets $ 118,183 $ 87,582 $30,601 34.9%
========= ========= ========

(1) - Mississippi includes Central and
Southern Mississippi Regions
(2) - Tennessee includes Memphis,
Tennessee and Northern Mississippi
Regions
*T

-0-
*T
Quarter Ended Linked Quarter
------------------- -----------------
LOANS PAST DUE OVER 90 DAYS 6/30/2008 3/31/2008 $ Change % Change
-------------------------------- --------- --------- -------- --------
Loans $ 3,056 $ 4,986 $(1,930) -38.7%
Loans HFS-Guaranteed GNMA
serviced loans 15,809 15,868 (59) -0.4%
--------- --------- --------
Total loans past due over
90 days $ 18,865 $ 20,854 $(1,989) -9.5%
========= ========= ========
*T

-0-
*T
NONPERFORMING ASSETS Quarter Ended Year over Year
-------------------------------- ------------------- -----------------
Nonaccrual loans 6/30/2008 6/30/2007 $ Change % Change
--------- --------- -------- --------
Florida $ 70,484 $ 6,364 $64,120 n/m
Mississippi (1) 12,572 13,553 (981) -7.2%
Tennessee (2) 5,216 3,831 1,385 36.2%
Texas 7,039 4,022 3,017 75.0%
--------- --------- --------
Total nonaccrual loans 95,311 27,770 67,541 n/m
Other real estate
Florida 10,398 - 10,398 n/m
Mississippi (1) 5,258 930 4,328 n/m
Tennessee (2) 6,778 2,858 3,920 n/m
Texas 438 192 246 n/m
--------- --------- --------
Total other real estate 22,872 3,980 18,892 n/m
--------- --------- --------
Total nonperforming
assets $ 118,183 $ 31,750 $86,433 n/m
========= ========= ========
*T

-0-
*T
Quarter Ended Year over Year
------------------- -----------------
LOANS PAST DUE OVER 90 DAYS 6/30/2008 6/30/2007 $ Change % Change
-------------------------------- --------- --------- -------- --------
Loans $ 3,056 $ 6,433 $(3,377) -52.5%
Loans HFS-Guaranteed GNMA
serviced loans 15,809 11,273 4,536 40.2%
--------- --------- --------
Total loans past due over
90 days $ 18,865 $ 17,706 $ 1,159 6.5%
========= ========= ========
*T

-0-
*T
Quarter Ended Linked Quarter
------------------- ------------------
ALLOWANCE FOR LOAN LOSSES 6/30/2008 3/31/2008 $ Change % Change
------------------------------- --------- --------- --------- --------
Beginning Balance $ 81,818 $ 79,851 $ 1,967 2.5%
Provision for loan losses 31,012 14,243 16,769 n/m
Charge-offs (28,820) (15,176) (13,644) 89.9%
Recoveries 2,566 2,900 (334) -11.5%
--------- --------- ---------
Net charge-offs (26,254) (12,276) (13,978) n/m
--------- --------- ---------
Ending Balance $ 86,576 $ 81,818 $ 4,758 5.8%
========= ========= =========
*T

-0-
*T
Quarter Ended Year over Year
------------------- ------------------
ALLOWANCE FOR LOAN LOSSES 6/30/2008 6/30/2007 $ Change % Change
------------------------------- --------- --------- --------- --------
Beginning Balance $ 81,818 $72,049 $ 9,769 13.6%
Provision for loan losses 31,012 145 30,867 n/m
Charge-offs (28,820) (4,187) (24,633) n/m
Recoveries 2,566 2,941 (375) -12.8%
--------- --------- ---------
Net charge-offs (26,254) (1,246) (25,008) n/m
--------- --------- ---------
Ending Balance $ 86,576 $70,948 $ 15,628 22.0%
========= ========= =========
*T

-0-
*T
Quarter Ended Linked Quarter
------------------- -----------------
PROVISION FOR LOAN LOSSES 6/30/2008 3/31/2008 $ Change % Change
-------------------------------- --------- --------- -------- --------
Florida $ 24,145 $ 9,557 $14,588 n/m
Mississippi (1) 3,667 2,807 860 30.6%
Tennessee (2) 2,440 779 1,661 n/m
Texas 760 1,100 (340) -30.9%
--------- --------- --------
Total provision for loan
losses $ 31,012 $ 14,243 $16,769 n/m
========= ========= ========
*T

-0-
*T
Quarter Ended Year over Year
-------------------- -----------------
PROVISION FOR LOAN LOSSES 6/30/2008 6/30/2007 $ Change % Change
------------------------------- --------- ---------- -------- --------
Florida $ 24,145 $ 482 $ 23,663 n/m
Mississippi (1) 3,667 360 3,307 n/m
Tennessee (2) 2,440 (368) 2,808 n/m
Texas 760 (329) 1,089 n/m
--------- ---------- --------
Total provision for loan
losses $ 31,012 $ 145 $ 30,867 n/m
========= ========== ========
*T

-0-
*T
Quarter Ended Linked Quarter
------------------- -----------------
NET CHARGE-OFFS 6/30/2008 3/31/2008 $ Change % Change
-------------------------------- --------- --------- -------- --------
Florida $ 22,064 $ 9,688 $12,376 n/m
Mississippi (1) 4,214 1,574 2,640 n/m
Tennessee (2) 48 186 (138) -74.2%
Texas (72) 828 (900) n/m
--------- --------- --------
Total net charge-offs $ 26,254 $ 12,276 $13,978 n/m
========= ========= ========
*T

-0-
*T
Quarter Ended Year over Year
------------------- -----------------
NET CHARGE-OFFS 6/30/2008 6/30/2007 $ Change % Change
-------------------------------- --------- --------- -------- --------
Florida $ 22,064 $ (19) $22,083 n/m
Mississippi (1) 4,214 1,193 3,021 n/m
Tennessee (2) 48 48 - 0.0%
Texas (72) 24 (96) n/m
--------- --------- --------
Total net charge-offs $ 26,254 $ 1,246 $25,008 n/m
========= ========= ========
*T

-0-
*T
Quarter Ended
-----------------------------
CREDIT QUALITY RATIOS 6/30/2008 3/31/2008 6/30/2007
---------------------------------------- --------- --------- ---------
Net charge offs/average loans 1.49% 0.69% 0.07%
Provision for loan losses/average loans 1.76% 0.80% 0.01%
Nonperforming loans/total loans (incl
LHFS) 1.35% 1.08% 0.40%
Nonperforming assets/total loans (incl
LHFS) 1.68% 1.21% 0.46%
Nonperforming assets/total loans (incl
LHFS) +ORE 1.67% 1.21% 0.46%
ALL/total loans (excl LHFS) 1.26% 1.17% 1.05%
ALL-commercial/total commercial loans 1.67% 1.52% 1.41%
ALL-consumer/total consumer and home
mortgage loans 0.60% 0.60% 0.53%
ALL/nonperforming loans 90.84% 104.90% 255.48%
*T

-0-
*T
Quarter Ended
-----------------------------
CAPITAL RATIOS 6/30/2008 3/31/2008 6/30/2007
---------------------------------------- --------- --------- ---------
EOP equity/ EOP assets 10.05% 10.30% 10.04%
Average equity/average assets 10.29% 10.53% 10.16%
EOP tangible equity/EOP tangible assets 6.88% 7.05% 6.64%
Tier 1 leverage ratio 7.87% 8.12% 7.60%
Tier 1 risk-based capital ratio 9.58% 9.42% 9.19%
Total risk-based capital ratio 11.46% 11.21% 10.91%
*T

-0-
*T
Quarter Ended
------------------------------------
QUARTERLY AVERAGE BALANCES 6/30/2008 3/31/2008 12/31/2007
--------------------------------- ----------- ----------- ------------
Securities AFS-taxable $ 769,790 $ 353,079 $ 435,438
Securities AFS-nontaxable 35,869 36,241 46,898
Securities HTM-taxable 186,047 189,604 192,878
Securities HTM-nontaxable 76,940 81,559 82,963
----------- ----------- ------------
Total securities 1,068,646 660,483 758,177
----------- ----------- ------------
Loans (including loans held for
sale) 7,080,495 7,177,233 7,149,243
Fed funds sold and rev repos 30,567 22,921 25,960
Other earning assets 41,481 36,958 41,368
----------- ----------- ------------
Total earning assets 8,221,189 7,897,595 7,974,748
----------- ----------- ------------
Allowance for loan losses (82,962) (80,998) (73,659)
Cash and due from banks 253,545 259,392 257,319
Other assets 782,986 775,722 765,939
----------- ----------- ------------
Total assets $9,174,758 $8,851,711 $8,924,347
=========== =========== ============

Interest-bearing demand deposits $1,258,281 $1,233,892 $1,160,823
Savings deposits 1,867,438 1,755,048 1,608,125
Time deposits less than $100,000 1,568,802 1,577,753 1,570,687
Time deposits of $100,000 or more 1,051,716 1,030,527 1,058,165
----------- ----------- ------------
Total interest-bearing
deposits 5,746,237 5,597,220 5,397,800
Fed funds purchased and repos 618,227 417,338 517,424
Short-term borrowings 202,778 252,234 413,676
Subordinated notes 49,720 49,712 49,703
Junior subordinated debt
securities 70,104 70,104 70,104
----------- ----------- ------------
Total interest-bearing
liabilities 6,687,066 6,386,608 6,448,707
Noninterest-bearing deposits 1,409,371 1,390,843 1,419,364
Other liabilities 134,237 141,741 137,197
Shareholders' equity 944,084 932,519 919,079
----------- ----------- ------------
Total liabilities and equity $9,174,758 $8,851,711 $8,924,347
=========== =========== ============

Quarter Ended
-------------------------
QUARTERLY AVERAGE BALANCES 9/30/2007 6/30/2007
--------------------------------------------- ----------- -----------
Securities AFS-taxable $ 525,858 $ 655,815
Securities AFS-nontaxable 48,818 52,627
Securities HTM-taxable 194,356 196,424
Securities HTM-nontaxable 84,767 86,491
----------- -----------
Total securities 853,799 991,357
----------- -----------
Loans (including loans held for sale) 6,970,434 6,784,126
Fed funds sold and rev repos 30,201 33,811
Other earning assets 33,341 35,033
----------- -----------
Total earning assets 7,887,775 7,844,327
----------- -----------
Allowance for loan losses (70,950) (72,400)
Cash and due from banks 260,997 285,424
Other assets 759,626 748,306
----------- -----------
Total assets $8,837,448 $8,805,657
=========== ===========

Interest-bearing demand deposits $1,166,548 $1,224,450
Savings deposits 1,671,993 1,770,576
Time deposits less than $100,000 1,575,320 1,613,569
Time deposits of $100,000 or more 1,037,785 1,007,157
----------- -----------
Total interest-bearing deposits 5,451,646 5,615,752
Fed funds purchased and repos 491,488 426,738
Short-term borrowings 314,264 142,815
Subordinated notes 49,696 49,688
Junior subordinated debt securities 70,104 70,104
----------- -----------
Total interest-bearing liabilities 6,377,198 6,305,097
Noninterest-bearing deposits 1,423,745 1,484,611
Other liabilities 135,469 120,879
Shareholders' equity 901,036 895,070
----------- -----------
Total liabilities and equity $8,837,448 $8,805,657
=========== ===========
*T

-0-
*T
Six Months Ended
-----------------------
QUARTERLY AVERAGE BALANCES 6/30/2008 6/30/2007
---------------------------------------------- ----------- -----------
Securities AFS-taxable $ 561,435 $ 668,778
Securities AFS-nontaxable 36,055 53,715
Securities HTM-taxable 187,826 197,350
Securities HTM-nontaxable 79,250 88,230
----------- -----------
Total securities 864,566 1,008,073
----------- -----------
Loans (including loans held for sale) 7,128,864 6,724,206
Fed funds sold and rev repos 26,744 53,832
Other earning assets 39,220 36,909
----------- -----------
Total earning assets 8,059,394 7,823,020
----------- -----------
Allowance for loan losses (81,980) (72,426)
Cash and due from banks 256,469 315,532
Other assets 779,352 744,071
----------- -----------
Total assets $9,013,235 $8,810,197
=========== ===========

Interest-bearing demand deposits $1,246,087 $1,210,062
Savings deposits 1,811,243 1,777,829
Time deposits less than $100,000 1,573,277 1,615,233
Time deposits of $100,000 or more 1,041,122 1,014,514
----------- -----------
Total interest-bearing deposits 5,671,729 5,617,638
Fed funds purchased and repos 517,783 389,475
Short-term borrowings 227,506 172,661
Subordinated notes 49,716 49,684
Junior subordinated debt securities 70,104 70,104
----------- -----------
Total interest-bearing liabilities 6,536,838 6,299,562
Noninterest-bearing deposits 1,400,107 1,489,999
Other liabilities 137,988 124,054
Shareholders' equity 938,302 896,582
----------- -----------
Total liabilities and equity $9,013,235 $8,810,197
=========== ===========
*T

-0-
*T
PERIOD END BALANCES 6/30/2008 3/31/2008 12/31/2007
---------------------------------- ----------- ----------- -----------
Cash and due from banks $ 296,628 $ 290,200 $ 292,983
Fed funds sold and rev repos 23,901 16,022 17,997
Securities available for sale 908,949 585,746 442,345
Securities held to maturity 260,741 267,315 275,096
Loans held for sale 184,858 198,245 147,508
Loans 6,859,375 7,012,034 7,040,792
Allowance for loan losses (86,576) (81,818) (79,851)
----------- ----------- -----------
Net Loans 6,772,799 6,930,216 6,960,941
Premises and equipment, net 154,026 151,469 151,680
Mortgage servicing rights 76,209 59,047 67,192
Goodwill 291,145 291,210 291,177
Identifiable intangible assets 25,958 27,030 28,102
Other assets 319,835 280,653 291,781
----------- ----------- -----------
Total assets $9,315,049 $9,097,153 $8,966,802
=========== =========== ===========

Deposits:
Noninterest-bearing $1,443,553 $1,475,976 $1,477,171
Interest-bearing 5,680,130 5,868,359 5,392,101
----------- ----------- -----------
Total deposits 7,123,683 7,344,335 6,869,272
Fed funds purchased and repos 748,137 433,431 460,763
Short-term borrowings 260,812 93,453 474,354
Subordinated notes 49,725 49,717 49,709
Junior subordinated debt
securities 70,104 70,104 70,104
Other liabilities 126,703 168,772 122,964
----------- ----------- -----------
Total liabilities 8,379,164 8,159,812 8,047,166
----------- ----------- -----------
Common stock 11,938 11,938 11,933
Capital surplus 126,881 126,003 124,161
Retained earnings 814,674 810,369 797,993
Accum other comprehensive loss,
net of tax (17,608) (10,969) (14,451)
----------- ----------- -----------
Total shareholders' equity 935,885 937,341 919,636
----------- ----------- -----------
Total liabilities and equity $9,315,049 $9,097,153 $8,966,802
=========== =========== ===========

PERIOD END BALANCES 9/30/2007 6/30/2007
--------------------------------------------- ----------- -----------
Cash and due from banks $ 306,107 $ 292,248
Fed funds sold and rev repos 28,625 20,081
Securities available for sale 519,920 608,906
Securities held to maturity 278,385 281,403
Loans held for sale 133,693 132,588
Loans 6,917,541 6,769,632
Allowance for loan losses (72,368) (70,948)
----------- -----------
Net Loans 6,845,173 6,698,684
Premises and equipment, net 146,630 144,263
Mortgage servicing rights 73,253 76,955
Goodwill 291,177 290,852
Identifiable intangible assets 29,313 30,528
Other assets 258,711 252,259
----------- -----------
Total assets $8,910,987 $8,828,767
=========== ===========

Deposits:
Noninterest-bearing $1,435,231 $1,505,821
Interest-bearing 5,467,221 5,563,364
----------- -----------
Total deposits 6,902,452 7,069,185
Fed funds purchased and repos 525,142 503,442
Short-term borrowings 340,598 138,529
Subordinated notes 49,701 49,693
Junior subordinated debt securities 70,104 70,104
Other liabilities 115,453 111,654
----------- -----------
Total liabilities 8,003,450 7,942,607
----------- -----------
Common stock 11,933 11,931
Capital surplus 123,227 122,185
Retained earnings 787,356 770,925
Accum other comprehensive loss, net of tax
(14,979) (18,881)
----------- -----------
Total shareholders' equity 907,537 886,160
----------- -----------
Total liabilities and equity $8,910,987 $8,828,767
=========== ===========
*T

-0-
*T
Quarter Ended
---------------------------------------
INCOME STATEMENTS 6/30/2008 3/31/2008 12/31/2007
------------------------------ ------------ ------------ -------------
Interest and fees on loans-FTE $ 109,023 $ 119,641 $ 133,088
Interest on securities-taxable 11,079 5,857 6,505
Interest on securities-tax
exempt-FTE 1,943 2,086 2,352
Interest on fed funds sold and
rev repos 168 179 317
Other interest income 475 572 501
------------ ------------ -------------
Total interest income-FTE 122,688 128,335 142,763
------------ ------------ -------------
Interest on deposits 36,881 43,363 47,911
Interest on fed funds pch and
repos 3,019 3,073 5,499
Other interest expense 2,923 4,829 7,055
------------ ------------ -------------
Total interest expense 42,823 51,265 60,465
------------ ------------ -------------
Net interest income-FTE 79,865 77,070 82,298
Provision for loan losses 31,012 14,243 17,001
------------ ------------ -------------
Net interest income after
provision-FTE 48,853 62,827 65,297
------------ ------------ -------------
Service charges on deposit
accounts 13,223 12,564 13,908
Insurance commissions 8,394 8,256 7,630
Wealth management 7,031 7,198 6,969
General banking - other 6,053 5,788 6,177
Mortgage banking, net 6,708 11,056 4,967
Other, net 6,999 3,221 2,604
------------ ------------ -------------
Nonint inc-excl sec
gains, net 48,408 48,083 42,255
Security gains, net 58 433 2
------------ ------------ -------------
Total noninterest income 48,466 48,516 42,257
------------ ------------ -------------
Salaries and employee benefits 42,771 43,584 42,446
Services and fees 9,526 9,430 9,375
Net occupancy-premises 4,850 4,801 4,716
Equipment expense 4,144 4,074 4,165
Other expense 8,323 7,937 9,020
------------ ------------ -------------
Total noninterest expense 69,614 69,826 69,722
------------ ------------ -------------
Income before income taxes and
tax eq adj 27,705 41,517 37,832
Tax equivalent adjustment 2,247 2,321 2,375
------------ ------------ -------------
Income before income taxes 25,458 39,196 35,457
Income taxes 7,906 13,017 11,628
------------ ------------ -------------
Net income $ 17,552 $ 26,179 $ 23,829
============ ============ =============

Quarter Ended
---------------------------------------
Per Share Data 6/30/2008 3/31/2008 12/31/2007
------------ ------------ -------------
Earnings per share -
basic $ 0.31 $ 0.46 $ 0.42
============ ============ =============

Earnings per share -
diluted $ 0.31 $ 0.46 $ 0.42
============ ============ =============

Dividends per share $ 0.23 $ 0.23 $ 0.23
============ ============ =============

Weighted average shares
outstanding
Basic 57,296,449 57,283,240 57,272,408
============ ============ =============

Diluted 57,335,393 57,312,428 57,341,472
============ ============ =============

Period end shares outstanding 57,296,449 57,296,449 57,272,408
============ ============ =============

Quarter Ended
---------------------------------------
OTHER FINANCIAL DATA 6/30/2008 3/31/2008 12/31/2007
------------------------------ ------------ ------------ -------------
ROA 0.77% 1.19% 1.06%
ROE 7.48% 11.29% 10.29%
Return on average tangible
equity 11.70% 17.59% 16.28%
Interest margin - Yield - FTE 6.00% 6.54% 6.94%
Interest margin - Cost - FTE 2.10% 2.61% 3.01%
Net interest margin - FTE 3.91% 3.92% 3.93%
Rate on interest-bearing
liabilities 2.58% 3.23% 3.72%
Efficiency ratio 56.64% 56.64% 56.80%
EOP Employees - FTE 2,637 2,627 2,612

COMMON STOCK PERFORMANCE 6/30/2008 3/31/2008 12/31/2007
------------------------------ ------------ ------------ -------------
Market value-Close $ 17.65 $ 22.28 $ 25.36
Book value $ 16.33 $ 16.36 $ 16.06
Tangible book value $ 10.80 $ 10.81 $ 10.48
Market/Book value 108.08% 136.19% 157.91%
Market/Tangible book value 163.43% 206.20% 241.98%

Quarter Ended
---------------------------
INCOME STATEMENTS 9/30/2007 6/30/2007
------------------------------------------- ------------ ------------
Interest and fees on loans-FTE $ 129,394 $ 124,224
Interest on securities-taxable 7,181 9,018
Interest on securities-tax exempt-FTE 2,422 2,536
Interest on fed funds sold and rev repos 397 457
Other interest income 482 541
------------ ------------
Total interest income-FTE 139,876 136,776
------------ ------------
Interest on deposits 50,423 51,686
Interest on fed funds pch and repos 5,898 5,014
Other interest expense 6,186 3,937
------------ ------------
Total interest expense 62,507 60,637
------------ ------------
Net interest income-FTE 77,369 76,139
Provision for loan losses 4,999 145
------------ ------------
Net interest income after provision-
FTE 72,370 75,994
------------ ------------
Service charges on deposit accounts 13,849 13,729
Insurance commissions 8,983 9,901
Wealth management 6,507 6,400
General banking - other 6,111 6,418
Mortgage banking, net 2,503 1,799
Other, net 3,593 2,194
------------ ------------
Nonint inc-excl sec gains, net 41,546 40,441
Security gains, net 23 29
------------ ------------
Total noninterest income 41,569 40,470
------------ ------------
Salaries and employee benefits 42,257 42,853
Services and fees 9,285 9,041
Net occupancy-premises 4,753 4,634
Equipment expense 3,922 4,048
Other expense 8,271 8,257
------------ ------------
Total noninterest expense 68,488 68,833
------------ ------------
Income before income taxes and tax eq adj 45,451 47,631
Tax equivalent adjustment 2,283 2,307
------------ ------------
Income before income taxes 43,168 45,324
Income taxes 14,087 15,496
------------ ------------
Net income $ 29,081 $ 29,828
============ ============

Quarter Ended
---------------------------
Per Share Data 9/30/2007 6/30/2007
------------ ------------
Earnings per share - basic $ 0.51 $ 0.52
============ ============

Earnings per share - diluted $ 0.51 $ 0.51
============ ============

Dividends per share $ 0.22 $ 0.22
============ ============

Weighted average shares outstanding
Basic 57,267,119 57,807,447
============ ============

Diluted 57,526,573 58,025,401
============ ============

Period end shares outstanding 57,272,408 57,264,283
============ ============

Quarter Ended
---------------------------
OTHER FINANCIAL DATA 9/30/2007 6/30/2007
------------------------------------------- ------------ ------------
ROA 1.31% 1.36%
ROE 12.80% 13.37%
Return on average tangible equity 20.41% 21.38%
Interest margin - Yield - FTE 7.04% 6.99%
Interest margin - Cost - FTE 3.14% 3.10%
Net interest margin - FTE 3.89% 3.89%
Rate on interest-bearing liabilities 3.89% 3.86%
Efficiency ratio 57.98% 59.04%
EOP Employees - FTE 2,635 2,694

COMMON STOCK PERFORMANCE 9/30/2007 6/30/2007
------------------------------------------- ------------ ------------
Market value-Close $ 28.04 $ 25.86
Book value $ 15.85 $ 15.47
Tangible book value $ 10.25 $ 9.86
Market/Book value 176.91% 167.16%
Market/Tangible book value 273.56% 262.20%
*T

-0-
*T
Six Months Ended
-------------------------
INCOME STATEMENTS 6/30/2008 6/30/2007
-------------------------------------------- ------------ ------------
Interest and fees on loans-FTE $ 228,664 $ 244,189
Interest on securities-taxable 16,936 18,098
Interest on securities-tax exempt-FTE 4,029 5,169
Interest on fed funds sold and rev repos 347 1,433
Other interest income 1,047 1,133
------------ ------------
Total interest income-FTE 251,023 270,022
------------ ------------
Interest on deposits 80,244 102,041
Interest on fed funds pch and repos 6,092 8,827
Other interest expense 7,752 8,520
------------ ------------
Total interest expense 94,088 119,388
------------ ------------
Net interest income-FTE 156,935 150,634
Provision for loan losses 45,255 1,784
------------ ------------
Net interest income after provision-FTE 111,680 148,850
------------ ------------
Service charges on deposit accounts 25,787 26,422
Insurance commissions 16,650 18,673
Wealth management 14,229 12,279
General banking - other 11,841 12,588
Mortgage banking, net 17,764 4,554
Other, net 10,220 4,018
------------ ------------
Nonint inc-excl sec gains, net 96,491 78,534
Security gains, net 491 87
------------ ------------
Total noninterest income 96,982 78,621
------------ ------------
Salaries and employee benefits 86,355 86,019
Services and fees 18,956 18,599
Net occupancy-premises 9,651 9,048
Equipment expense 8,218 7,952
Other expense 16,260 16,621
------------ ------------
Total noninterest expense 139,440 138,239
------------ ------------
Income before income taxes and tax eq adj 69,222 89,232
Tax equivalent adjustment 4,568 4,860
------------ ------------
Income before income taxes 64,654 84,372
Income taxes 20,923 28,687
------------ ------------
Net income $ 43,731 $ 55,685
============ ============

Six Months Ended
-------------------------
Per Share Data 6/30/2008 6/30/2007
------------ ------------
Earnings per share - basic $ 0.76 $ 0.96
============ ============

Earnings per share - diluted $ 0.76 $ 0.95
============ ============

Dividends per share $ 0.46 $ 0.44
============ ============

Weighted average shares outstanding
Basic 57,289,844 58,155,955
============ ============

Diluted 57,322,388 58,415,070
============ ============

Period end shares outstanding 57,296,449 57,264,283
============ ============

Six Months Ended
-------------------------
OTHER FINANCIAL DATA 6/30/2008 6/30/2007
-------------------------------------------- ------------ ------------
ROA 0.98% 1.27%
ROE 9.37% 12.52%
Return on average tangible equity 14.61% 20.08%
Interest margin - Yield - FTE 6.26% 6.96%
Interest margin - Cost - FTE 2.36% 3.08%
Net interest margin - FTE 3.92% 3.88%
Rate on interest-bearing liabilities 2.89% 3.82%
Efficiency ratio 56.64% 60.44%
*T

-0-
*T
NONPERFORMING ASSETS 6/30/2008 3/31/2008 12/31/2007
-------------------------------------- --------- --------- -----------
Nonaccrual loans
Florida $ 70,484 $ 49,654 $ 43,787
Mississippi (1) 12,572 14,583 13,723
Tennessee (2) 5,216 6,550 4,431
Texas 7,039 7,207 3,232
--------- --------- -----------
Total nonaccrual loans 95,311 77,994 65,173
Other real estate
Florida 10,398 1,067 995
Mississippi (1) 5,258 1,741 1,123
Tennessee (2) 6,778 6,634 6,084
Texas 438 146 146
--------- --------- -----------
Total other real estate 22,872 9,588 8,348
--------- --------- -----------
Total nonperforming assets $ 118,183 $ 87,582 $ 73,521
========= ========= ===========

Quarter Ended
-------------------------------
LOANS PAST DUE OVER 90 DAYS 6/30/2008 3/31/2008 12/31/2007
-------------------------------------- --------- --------- -----------
Loans $ 3,056 $ 4,986 $ 4,853
Loans HFS-Guaranteed GNMA serviced
loans 15,809 15,868 11,847
--------- --------- -----------
Total loans past due over 90 days $ 18,865 $ 20,854 $ 16,700
========= ========= ===========

NONPERFORMING ASSETS 9/30/2007 6/30/2007
------------------------------------------------- --------- ---------
Nonaccrual loans
Florida $ 19,536 $ 6,364
Mississippi (1) 16,641 13,553
Tennessee (2) 4,956 3,831
Texas 4,316 4,022
--------- ---------
Total nonaccrual loans 45,449 27,770
Other real estate
Florida 1,175 -
Mississippi (1) 917 930
Tennessee (2) 3,726 2,858
Texas 52 192
--------- ---------
Total other real estate 5,870 3,980
--------- ---------
Total nonperforming assets $ 51,319 $ 31,750
========= =========

Quarter Ended
---------------------
LOANS PAST DUE OVER 90 DAYS 9/30/2007 6/30/2007
------------------------------------------------- --------- ---------
Loans $ 9,521 $ 6,433
Loans HFS-Guaranteed GNMA serviced loans 9,539 11,273
--------- ---------
Total loans past due over 90 days $ 19,060 $ 17,706
========= =========
*T

-0-
*T
Quarter Ended
-------------------------------
ALLOWANCE FOR LOAN LOSSES 6/30/2008 3/31/2008 12/31/2007
-------------------------------------- --------- --------- -----------
Beginning Balance $ 81,818 $ 79,851 $ 72,368
Provision for loan losses 31,012 14,243 17,001
Charge-offs (28,820) (15,176) (11,904)
Recoveries 2,566 2,900 2,386
--------- --------- -----------
Net charge-offs (26,254) (12,276) (9,518)
--------- --------- -----------
Ending Balance $ 86,576 $ 81,818 $ 79,851
========= ========= ===========

Quarter Ended
---------------------
ALLOWANCE FOR LOAN LOSSES 9/30/2007 6/30/2007
------------------------------------------------- --------- ---------
Beginning Balance $ 70,948 $ 72,049
Provision for loan losses 4,999 145
Charge-offs (6,417) (4,187)
Recoveries 2,838 2,941
--------- ---------
Net charge-offs (3,579) (1,246)
--------- ---------
Ending Balance $ 72,368 $ 70,948
========= =========
*T

-0-
*T
Six Months Ended
-------------------
ALLOWANCE FOR LOAN LOSSES 6/30/2008 6/30/2007
-------------------------------------------------- --------- ---------
Beginning Balance $ 79,851 $ 72,098
Provision for loan losses 45,255 1,784
Charge-offs (43,996) (8,469)
Recoveries 5,466 5,535
--------- ---------
Net charge-offs (38,530) (2,934)
--------- ---------
Ending Balance $ 86,576 $ 70,948
========= =========
*T

-0-
*T
Quarter Ended
-------------------------------
PROVISION FOR LOAN LOSSES 6/30/2008 3/31/2008 12/31/2007
-------------------------------------- --------- --------- -----------
Florida $ 24,145 $ 9,557 $ 12,523
Mississippi (1) 3,667 2,807 2,724
Tennessee (2) 2,440 779 1,056
Texas 760 1,100 698
--------- --------- -----------
Total provision for loan losses $ 31,012 $ 14,243 $ 17,001
========= ========= ===========

Quarter Ended
---------------------
PROVISION FOR LOAN LOSSES 9/30/2007 6/30/2007
------------------------------------------------- --------- ---------
Florida $ 3,364 $ 482
Mississippi (1) (798) 360
Tennessee (2) 1,153 (368)
Texas 1,280 (329)
--------- ---------
Total provision for loan losses $ 4,999 $ 145
========= =========
*T

-0-
*T
Six Months Ended
-------------------
PROVISION FOR LOAN LOSSES 6/30/2008 6/30/2007
-------------------------------------------------- --------- ---------
Florida $ 33,702 $ 576
Mississippi (1) 6,474 1,562
Tennessee (2) 3,219 (372)
Texas 1,860 18
--------- ---------
Total provision for loan losses $ 45,255 $ 1,784
========= =========
*T

-0-
*T
Quarter Ended
-----------------------------------
NET CHARGE-OFFS 6/30/2008 3/31/2008 12/31/2007
---------------------------------- ----------- ---------- ------------
Florida $ 22,064 $ 9,688 $ 3,665
Mississippi (1) 4,214 1,574 3,999
Tennessee (2) 48 186 1,284
Texas (72) 828 570
----------- ---------- ------------
Total net charge-offs $ 26,254 $ 12,276 $ 9,518
=========== ========== ============

Quarter Ended
---------------------
NET CHARGE-OFFS 9/30/2007 6/30/2007
------------------------------------------------- --------- ---------
Florida $ 799 $ (19)
Mississippi (1) 2,312 1,193
Tennessee (2) 166 48
Texas 302 24
--------- ---------
Total net charge-offs $ 3,579 $ 1,246
========= =========
*T

-0-
*T
Six Months Ended
-------------------
NET CHARGE-OFFS 6/30/2008 6/30/2007
-------------------------------------------------- --------- ---------
Florida $ 31,752 $ 81
Mississippi (1) 5,788 2,426
Tennessee (2) 234 50
Texas 756 377
--------- ---------
Total net charge-offs $ 38,530 $ 2,934
========= =========
*T

-0-
*T
Quarter Ended
-------------------------------
CREDIT QUALITY RATIOS 6/30/2008 3/31/2008 12/31/2007
-------------------------------------- --------- --------- -----------
Net charge offs/average loans 1.49% 0.69% 0.53%
Provision for loan losses/average
loans 1.76% 0.80% 0.94%
Nonperforming loans/total loans (incl
LHFS) 1.35% 1.08% 0.91%
Nonperforming assets/total loans (incl
LHFS) 1.68% 1.21% 1.02%
Nonperforming assets/total loans (incl
LHFS) +ORE 1.67% 1.21% 1.02%
ALL/total loans (excl LHFS) 1.26% 1.17% 1.13%
ALL-commercial/total commercial loans 1.67% 1.52% 1.48%
ALL-consumer/total consumer and home
mortgage loans 0.60% 0.60% 0.59%
ALL/nonperforming loans 90.84% 104.90% 122.52%

Quarter Ended
---------------------
CREDIT QUALITY RATIOS 9/30/2007 6/30/2007
------------------------------------------------- --------- ---------
Net charge offs/average loans 0.20% 0.07%
Provision for loan losses/average loans 0.28% 0.01%
Nonperforming loans/total loans (incl LHFS) 0.64% 0.40%
Nonperforming assets/total loans (incl LHFS) 0.73% 0.46%
Nonperforming assets/total loans (incl LHFS) +ORE 0.73% 0.46%
ALL/total loans (excl LHFS) 1.05% 1.05%
ALL-commercial/total commercial loans 1.36% 1.41%
ALL-consumer/total consumer and home mortgage
loans 0.58% 0.53%
ALL/nonperforming loans 159.23% 255.48%
*T

-0-
*T
Six Months Ended
-------------------
CREDIT QUALITY RATIOS 6/30/2008 6/30/2007
-------------------------------------------------- --------- ---------
Net charge offs/average loans 1.09% 0.09%
Provision for loan losses/average loans 1.28% 0.05%
*T

-0-
*T
Quarter Ended
-------------------------------
CAPITAL RATIOS 6/30/2008 3/31/2008 12/31/2007
-------------------------------------- --------- --------- -----------
EOP equity/ EOP assets 10.05% 10.30% 10.26%
Average equity/average assets 10.29% 10.53% 10.30%
EOP tangible equity/EOP tangible
assets 6.88% 7.05% 6.94%
Tier 1 leverage ratio 7.87% 8.12% 7.86%
Tier 1 risk-based capital ratio 9.58% 9.42% 9.17%
Total risk-based capital ratio 11.46% 11.21% 10.93%

Quarter Ended
---------------------
CAPITAL RATIOS 9/30/2007 6/30/2007
------------------------------------------------- --------- ---------
EOP equity/ EOP assets 10.18% 10.04%
Average equity/average assets 10.20% 10.16%
EOP tangible equity/EOP tangible assets 6.83% 6.64%
Tier 1 leverage ratio 7.79% 7.60%
Tier 1 risk-based capital ratio 9.20% 9.19%
Total risk-based capital ratio 10.89% 10.91%
*T

-0-
*T
TRUSTMARK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIALS
June 30, 2008
($ in thousands except per share data)
(unaudited)
*T

Note 1 - Financial Performance Non-GAAP Disclosures

Management is presenting, in the accompanying table, adjustments
to net income as reported in accordance with generally accepted
accounting principles resulting from significant items occurring
during the periods presented. Management believes this information
will help users compare Trustmark's current results to those of prior
periods as presented in the table below.

-0-
*T
Quarter Ended
-------------------------------
6/30/2008 3/31/2008 12/31/2007
--------- --------- -----------

Net Income as reported-GAAP $ 17,552 $ 26,179 $ 23,829

Adjustments (net of taxes):
Mastercard Class A Common (3,308) - -
Visa Litigation Contingency - (936) 494
Correction of Accounting Error - - (1,989)
Hurricane Katrina - - -
--------- --------- -----------
(3,308) (936) (1,495)
--------- --------- -----------
Net Income adjusted for specific items
(Non-GAAP) $ 14,244 $ 25,243 $ 22,334
========= ========= ===========

Quarter Ended
---------------------
9/30/2007 6/30/2007
--------- ---------

Net Income as reported-GAAP $ 29,081 $ 29,828

Adjustments (net of taxes):
Mastercard Class A Common - -
Visa Litigation Contingency - -
Correction of Accounting Error - -
Hurricane Katrina - -
--------- ---------
- -
--------- ---------
Net Income adjusted for specific items (Non-GAAP)
$ 29,081 $ 29,828
========= =========
*T

-0-
*T
Six Months Ended
-------------------
6/30/2008 6/30/2007
--------- ---------

Net Income as reported-GAAP $43,731 $55,685

Adjustments (net of taxes):
Mastercard Class A Common (3,308) -
Visa Litigation Contingency (936) -
Correction of Accounting Error - -
Hurricane Katrina - (665)
--------- ---------
(4,244) (665)
--------- ---------
Net Income adjusted for specific items (Non-GAAP)
$39,487 $55,020
========= =========
*T

MasterCard Class A Common

During the quarter, MasterCard offered Class B shareholders the
right to convert their stock into marketable Class A shares. Trustmark
exercised its right to convert its shares and sold them through a
liquidation program sponsored by a market maker. The conversion and
sale resulted in an after-tax gain of $3.3 million.

Visa Litigation Contingency

In the first quarter of 2008, Trustmark recognized a gain of $1.5
million resulting from the Visa initial public offering. This gain
more than offsets an accrual of $800 thousand that Trustmark recorded
in the fourth quarter of 2007 for the Visa litigation contingency
relating to the Visa USA Inc. antitrust lawsuit settlement with
American Express and other pending Visa litigation (reflecting
Trustmark's share as a Visa member).

Correction of Accounting Error

Trustmark's consolidated financial statements for the fourth
quarter of 2007 included a pre-tax benefit of $3.2 million for the
correction of an error relating to the amortization of deferred loan
fees, which was included in interest income on loans. Trustmark's
Management as well as the Audit and Finance Committee of the Board of
Directors reviewed this accounting error utilizing Securities and
Exchange Commission Staff Accounting Bulletins (SAB) Nos. 99 and 108
and believe the impact of this error was not material to the 2007 or
prior period consolidated financial statements.

Hurricane Katrina

In the third quarter of 2005, immediately following in the
aftermath of Hurricane Katrina, Trustmark estimated possible pre-tax
losses resulting from this storm of $11.7 million. Trustmark revised
these estimates quarterly and any subsequent adjustments are reflected
in the table above, net of taxes. At June 30, 2008, the allowance for
loan losses included $405 thousand related to possible Hurricane
Katrina losses.

Note 2 - Loan Composition

-0-
*T
LOANS BY TYPE 6/30/2008 3/31/2008 12/31/2007
---------------------------------- ----------- ----------- -----------
Loans secured by real estate:
Construction, land development
and other land loans $1,158,549 $1,212,052 $1,194,940
Secured by 1-4 family
residential properties 1,633,021 1,660,148 1,694,757
Secured by nonfarm,
nonresidential properties 1,300,753 1,315,449 1,325,379
Other real estate secured 148,588 160,373 167,610
Commercial and industrial loans 1,313,620 1,286,578 1,283,014
Consumer loans 994,475 1,056,346 1,087,337
Other loans 310,369 321,088 287,755
----------- ----------- -----------
Loans 6,859,375 7,012,034 7,040,792
Allowance for loan losses (86,576) (81,818) (79,851)
----------- ----------- -----------
Net Loans $6,772,799 $6,930,216 $6,960,941
=========== =========== ===========

LOANS BY TYPE 9/30/2007 6/30/2007
---------------------------------------------- ----------- -----------
Loans secured by real estate:
Construction, land development and other
land loans $1,155,737 $1,059,721
Secured by 1-4 family residential
properties 1,756,427 1,827,945
Secured by nonfarm, nonresidential
properties 1,269,625 1,268,236
Other real estate secured 142,505 132,833
Commercial and industrial loans 1,241,772 1,163,346
Consumer loans 1,068,610 1,018,427
Other loans 282,865 299,124
----------- -----------
Loans 6,917,541 6,769,632
Allowance for loan losses (72,368) (70,948)
----------- -----------
Net Loans $6,845,173 $6,698,684
=========== ===========
*T

-0-
*T
June 30, 2008
---------------------------------------------------
LOAN COMPOSITION Total Florida Mississippi Tennessee Texas
BY REGION (Central (Memphis,
and TN and
Southern Northern
Regions) MS
Regions)
------------------ ---------- -------- ----------- ---------- --------
Loans secured by
real estate:
Construction,
land
development and
other land
loans $1,158,549 $321,864 $ 475,381 $ 108,384 $252,920
Secured by 1-4
family
residential
properties 1,633,021 93,946 1,326,666 175,723 36,686
Secured by
nonfarm,
nonresidential
properties 1,300,753 178,869 725,791 188,347 207,746
Other real
estate secured 148,588 12,648 105,114 12,303 18,523
Commercial and
industrial loans 1,313,620 22,739 934,086 67,399 289,396
Consumer loans 994,475 2,905 945,704 32,862 13,004
Other loans 310,369 12,704 276,744 15,123 5,798
---------- -------- ----------- ---------- --------
Loans $6,859,375 $645,675 $ 4,789,486 $ 600,141 $824,073
========== ======== =========== ========== ========

CONSTRUCTION AND
LAND DEVELOPMENT
LOANS BY REGION
------------------
Lots $ 128,252 $ 84,936 $ 24,127 $ 5,277 $ 13,912
Development 233,464 41,098 96,158 14,842 81,366
Unimproved land 336,448 120,422 144,975 36,582 34,469
1-4 family
construction 197,766 33,151 84,083 15,232 65,300
Other construction 262,619 42,257 126,038 36,451 57,873
---------- -------- ----------- ---------- --------
Construction
and land
development
loans $1,158,549 $321,864 $ 475,381 $ 108,384 $252,920
========== ======== =========== ========== ========
*T

-0-
*T
FLORIDA CREDIT Total Criticized Classified Nonaccrual Impaired
QUALITY Loans Loans Loans Loans Loans
--------------- -------- ----------- ----------- ----------- ---------
Construction
and land
development
loans:
Lots $ 84,936 $ 15,711 $ 11,071 $ 7,455 $ 1,628
Development 41,098 19,245 19,245 19,245 10,107
Unimproved
land 120,422 65,058 37,417 21,660 18,178
1-4 family
construction 33,151 10,757 10,757 6,340 6,016
Other
construction 42,257 25,636 18,119 9,861 6,497
-------- ----------- ----------- ----------- ---------
Construction
and land
development
loans 321,864 136,407 96,609 64,561 42,426
Commercial,
commercial
real estate
and consumer 323,811 34,695 16,660 5,923 289
-------- ----------- ----------- ----------- ---------

Total Florida
loans $645,675 $ 171,102 $ 113,269 $ 70,484 $ 42,715
======== =========== =========== =========== =========
*T

-0-
*T
FLORIDA CREDIT QUALITY Total Loan Loss Loan Loss
Loans Reserves Reserve
Less % of
Impaired Non-
Loans Impaired
Loans
-------------------------------------- ---------- ---------- ---------
Construction and land development
loans:
Lots $ 83,308 $ 4,037 4.85%
Development 30,991 3,328 10.74%
Unimproved land 102,244 5,065 4.95%
1-4 family construction 27,135 1,002 3.69%
Other construction 35,760 2,326 6.50%
--------- ---------
Construction and land development
loans 279,438 15,758 5.64%
Commercial, commercial real estate
and consumer 323,522 6,587 2.04%
--------- ---------

Total Florida loans $ 602,960 $ 22,345 3.71%
========= =========
*T

All classified nonaccrual loans over $1 million are assessed for
impairment in accordance with SFAS No. 114. Most of Trustmark's
nonaccrual assets are viewed as collateral dependent and assessed
using a fair value of collateral approach. Fair value estimates begin
with appraised values, normally from recently received and reviewed
appraisals. Appraised values are adjusted down for costs associated
with asset disposal as well as for any further deterioration in values
since the most recent appraisals. When a loan is deemed to be
impaired, the full difference between book value and the most likely
estimate of the asset's net realizable value is charged off.

Note 3 - Mortgage Banking

Trustmark utilizes derivative instruments to offset changes in the
fair value of mortgage servicing rights (MSR) attributable to changes
in interest rates. Changes in the fair value of the derivative
instrument are recorded in mortgage banking income, net and are offset
by the changes in the fair value of MSR, as shown in the accompanying
table. MSR fair values represent the effect of present value decay and
the effect of changes in interest rates. Ineffectiveness of hedging
MSR fair value is measured by comparing total hedge cost to the fair
value of the MSR asset attributable to market changes. The impact of
this strategy resulted in a net positive ineffectiveness of $2.7
million and $7.4 million for the quarters ended June 30, 2008 and
March 31, 2008, respectively, and net negative ineffectiveness of $1.1
million for the quarter ended June 30, 2007.

The following table illustrates the components of mortgage banking
income included in noninterest income in the accompanying income
statements:

-0-
*T
Quarter Ended
--------------------------------------------------
6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2007
--------- --------- ---------- --------- ---------
Mortgage servicing
income, net $ 3,804 $ 3,747 $ 3,725 $ 3,503 $ 3,478
Change in fair
value-MSR from
market changes 13,104 (10,193) (8,143) (5,268) 4,392
Change in fair
value of
derivatives (10,453) 17,599 10,123 5,298 (5,492)
Change in fair
value-MSR from
runoff (2,303) (2,430) (2,064) (2,681) (2,494)
Gain on sales of
loans 2,542 1,078 1,594 1,224 1,496
Other, net 14 1,255 (268) 427 419
--------- --------- ---------- --------- ---------
Mortgage
banking, net $ 6,708 $ 11,056 $ 4,967 $ 2,503 $ 1,799
========= ========= ========== ========= =========
*T

-0-
*T
Six Months Ended
-------------------
6/30/2008 6/30/2007
--------- ---------
Mortgage servicing income, net $ 7,551 $ 6,956
Change in fair value-MSR from market changes 2,911 3,945
Change in fair value of derivatives 7,146 (4,777)
Change in fair value-MSR from runoff (4,733) (4,598)
Gain on sales of loans 3,620 2,841
Other, net 1,269 187
--------- ---------
Mortgage banking, net $ 17,764 $ 4,554
========= =========
*T

Note 4 - Earning Assets and Interest-Bearing Liabilities

The following table illustrates the yields on earning assets by
category as well as the rates paid on interest-bearing liabilities on
a tax equivalent basis:

-0-
*T
Quarter Ended
-------------------------------
6/30/2008 3/31/2008 12/31/2007
--------- --------- -----------
Securities - Taxable 4.66% 4.34% 4.11%
Securities - Nontaxable 6.93% 7.12% 7.19%
Securities - Total 4.90% 4.84% 4.63%
Loans 6.19% 6.70% 7.21%
FF Sold & Rev Repo 2.21% 3.14% 4.84%
Other Earning Assets 4.61% 6.22% 4.80%
Total Earning Assets 6.00% 6.54% 6.94%

Interest-bearing Deposits 2.58% 3.12% 3.52%
FF Pch & Repo 1.96% 2.96% 4.22%
Borrowings 3.64% 5.22% 5.25%
Total Interest-bearing
Liabilities 2.58% 3.23% 3.72%

Net interest margin 3.91% 3.92% 3.93%

Quarter Ended
---------------------
9/30/2007 6/30/2007
--------- ---------
Securities - Taxable 3.96% 4.24%
Securities - Nontaxable 7.19% 7.31%
Securities - Total 4.46% 4.67%
Loans 7.36% 7.34%
FF Sold & Rev Repo 5.22% 5.42%
Other Earning Assets 5.74% 6.19%
Total Earning Assets 7.04% 6.99%

Interest-bearing Deposits 3.67% 3.69%
FF Pch & Repo 4.76% 4.71%
Borrowings 5.65% 6.01%
Total Interest-bearing Liabilities 3.89% 3.86%

Net interest margin 3.89% 3.89%
*T

-0-
*T
Six Months Ended
-------------------
6/30/2008 6/30/2007
--------- ---------
Securities - Taxable 4.55% 4.21%
Securities - Nontaxable 7.03% 7.34%
Securities - Total 4.88% 4.65%
Loans 6.45% 7.32%
FF Sold & Rev Repo 2.61% 5.37%
Other Earning Assets 5.37% 6.19%
Total Earning Assets 6.26% 6.96%

Interest-bearing Deposits 2.85% 3.66%
FF Pch & Repo 2.37% 4.57%
Borrowings 4.49% 5.87%
Total Interest-bearing Liabilities 2.89% 3.82%

Net interest margin 3.92% 3.88%
*T

All periods prior to June 30, 2008 have been restated to include
the addition of other earning assets, made up primarily of Federal
Home Loan Bank and Federal Reserve Bank stock.

As discussed in Note 1, Trustmark corrected an accounting error in
its consolidated financial statements resulting in a pre-tax benefit
of $3.2 million for the quarter ended December 31, 2007. This error
correction has been excluded in the table above. Including this error
correction, Trustmark's loan yield for the quarter ended December 31,
2007 was 7.39%, while the net interest margin for the same time period
was 4.09%.

Trustmark Corporation
Investors:
Louis E. Greer
Treasurer and Principal Financial Officer
601-208-2310
or
Joseph Rein
First Vice President
601-208-6898
or
Media:
Melanie A. Morgan
First Vice President
601-208-2979

Copyright Business Wire 2008