As FirstBank prepares to acquire the Chattanooga area operations of Atlantic Capital Bank and shutter three local branches, the parent company of FirstBank, FB Financial Corp., announced plans Monday to also exit the wholesale mortgage and correspondent banking business.
FirstBank said it has signed an agreement to sell its third party origination channel to Renasant Bank, which is expected to retain most of the 100 employees who work in the division.
Chris HolmesThe Nashville-based FirstBank will retain its retail mortgage operations, but the sale is expected to cut what was a money-losing operation for the bank in the fourth quarter of 2018.
Additionally, FirstBank has entered into a non-binding indication of interest to sell its correspondent channel to a separate unrelated third party.
“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,” FirstBank CEO Chris Holmes said Monday. “The exit also allows additional focus on our retail and consumer direct (online) origination channels.”