Trustmark in Jackson, Miss., is the latest bank to sell Paycheck Protection Program loans to The Loan Source.
The $16.9 billion-asset company disclosed in a regulatory filing Wednesday that it sold $354.2 million of PPP loans, or “substantially all” of its 2021 originations under the program.
The Loan Source will assume responsibility for the servicing and forgiveness process for the loans, Trustmark said. The sale 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.”
Trustmark said that, on a pretax basis, it expects to accelerate the recognition of unamortized PPP loan origination fees, net of cost, of roughly $18.6 million, in the second quarter.
“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,” the filing said. “Thus this transaction serves to accelerate revenue anticipated in future periods into the second quarter.”
Dime Community Bancshares in Hauppauge, N.Y., announced earlier in the week that it had sold more than $585 million of PPP loans to The Loan Source.