FB Financial in Nashville, Tenn., is planning to get out of wholesale mortgage lending.
The $5.1 billion-asset company said in a press release Monday that it will sell its third-party origination channel to Renasant in Tupelo, Miss. The deal is expected to close in the second quarter.
Renasant will assume substantially all of the assets and personnel related to that business.
FB Financial did not disclose the price Renasant will pay.
FB Financial said it had a nonbinding indication of interest to sell its correspondent channel to an unnamed buyer. While a definitive agreement is subject to the buyer’s additional review of the assets to be purchased, FB Financial said it believes it can complete the sale in the second quarter.
“We have reviewed our mortgage operations and concluded that the exit of these wholesale channels better aligns mortgage with our strategic plan and long-term vision for the company,” Chris Holmes, FB Financial’s president and CEO, said in the release. “The exit also allows additional focus on our retail and [online] origination channels.”
FB Financial said it plans to record a restructuring charge of up to $2.5 million to cover deal-related expenses, severance and other items.
The company said it expects its mortgage operations to record a small pretax contribution in the first quarter, excluding the restructuring charges. Those operations had a pretax loss of $1.8 million in the fourth quarter.