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MB Financial to exit national residential mortgage origination
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MB Financial Inc. is discontinuing its national residential mortgage origination business.
The exit involves all originations outside its Chicago-area consumer banking footprint, but spares the origination of residential mortgages in greater Chicago. MB Financial also intends to keep its mortgage servicing asset and mortgage servicing operation in Wilmington, Ohio, and to continue holding residential mortgage loans on its balance sheet.
The move is projected to result in one-time costs of $37 million to $41 million for the rest of the year, with $21 million to $23 million of the amount related to severance, retention and personnel.
MB Financial also expects its mortgage segment to suffer an estimated $3.5 million drop, net of funding costs, in quarterly net interest income by the third quarter, compared with fourth-quarter 2017 levels. Quarterly noninterest expense is expected to have fallen $26 million by the end of the year, from fourth-quarter 2017's $33.9 million.
The company additionally disclosed that it expects to report a first-quarter net interest margin of 3.55%, on a fully tax equivalent basis. This excludes accretion on certain acquired loans.
