Item 8.01. Other Events
On June 30, 2021, Trustmark Corporation ("Trustmark") announced the sale of
substantially all Paycheck Protection Program ("PPP") loans originated in 2021
by its wholly owned subsidiary, Trustmark National Bank ("TNB"), to The Loan
Source, Inc. ("Loan Source"), a firm with significant expertise in PPP
loans. Trustmark associates worked tirelessly to secure funding for businesses
during the COVID-19 pandemic to keep their staffs employed and support local
economies by actively participating in the Small Business Administration's
PPP. As a result of this transaction, Loan Source will assume responsibility for
the servicing and forgiveness process for the loans it has acquired from
Trustmark. Trustmark understands that Loan Source has made significant
investments in technology and personnel to aid PPP borrowers through the
forgiveness process via an online portal. This transaction will allow Trustmark
to focus on more traditional lending efforts and increase its ability to provide
customers with financial services in an improving economic environment.
On a pre-tax basis, Trustmark expects to accelerate the recognition of
unamortized PPP loan origination fees, net of cost, of approximately $18.6
million, in the second quarter of 2021 due to the sale of approximately $354.2
million in PPP loans. This revenue is substantially the same as Trustmark would
expect to recognize upon the maturity or forgiveness of the PPP loans being sold
in this transaction, and thus this transaction serves to accelerate revenue
anticipated in future periods into the second quarter.
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