FB Financial provides update on its exit of wholesale mortgage channels
FB Financial Corporation's wholly-owned subsidiary, FirstBank, announced that it has signed an agreement to sell its Correspondent Lending channel to Rushmore Loan Management Services. Upon closing of the transaction, Rushmore will assume substantially all of the assets and personnel related to the channel. The agreement is subject to customary closing conditions. FB Financial expects the transaction to close early in Q3. FirstBank completed the sale of its Third Party Origination channel to Renasant Bank on June 7, 2019. Upon the closing of the sale of the Correspondent channel to Rushmore, the mortgage restructuring announced on April 1, 2019 will substantially be completed. In addition to the $1.1M restructuring expense reported for Q1, FB Financial expects to record additional restructuring charges of up to $1.5M to cover transaction related expenses, severance and other items related to its mortgage operations. Excluding the impact of the mortgage restructuring charges, FB Financial expects an increase in the operating results from its total mortgage operations in Q2 as compared to Q1.