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After the sale, expected to close in the second quarter of 2023, BNC Bank will continue to facilitate mortgage loans for its bank and wealth management customers as part of its full range of banking services, according to the company’s news release.
BNC chairman Michael Vekich said the decision to close the bank’s nationwide mortgage business was made after “extensive deliberations” and that the move is in the best long-term interests of the bank and its shareholders.
“In the last year, we have taken substantial steps to improve the profitability of our mortgage banking origination business in response to the persistent challenges facing the mortgage banking industry,” he said. “We are proud of the resiliency and dedication of our mortgage banking team, which has built a reputation for providing quality service. However, it is unclear when and to what extent mortgage industry conditions will improve.”
Vekich cited several factors behind the exit, including competitive, technological and regulatory changes and the volatility of the mortgage demand. He said these have made it “more difficult to run a mortgage company within a community bank.
“Simply put, since we expanded our mortgage banking operations in 2008, the landscape has changed,” Vekich added. “This transaction enables us to focus on our core banking activities to benefit our shareholders and the communities we serve.”
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