FB Financial announces exit of wholesale mortgage channels
FB Financial Corporation announced that it is restructuring its Mortgage segment through the exit of its wholesale mortgage origination operations. FirstBank has signed an agreement to sell its third party origination channel to Renasant Bank. Upon closing of the transaction, Renasant Bank will assume substantially all of the assets and personnel related to the channel. The agreement is subject to customary closing conditions, including the receipt of any required third party and regulatory approvals. FB Financial expects the transaction to close in the second quarter of 2019. Additionally, FirstBank has entered into a non-binding indication of interest to sell its correspondent channel to a separate unrelated third party. Assuming completion of the transaction, the third party will assume substantially all of the assets and personnel related to the channel. The proposed transaction is subject to, among other things, the potential buyer's additional review of the assets to be purchased, as well as the negotiation and execution of a definitive agreement with respect to the transaction, which will include certain terms and conditions, including customary representations and warranties. Subject to signing of an agreement and final diligence, FB Financial expects the transaction to close in the second quarter of 2019. FB Financial expects to record a restructuring charge of up to $2.5M to cover deal related expenses, severance and other items related to its mortgage operations. Additionally, FB Financial expects its total mortgage operations to record a small pre-tax contribution for the first quarter of 2019, excluding the impact of the aforementioned mortgage restructuring charges, compared to total mortgage operations pre-tax loss of $1.8M in the fourth quarter of 2018.