Primis Financial in McLean, Va., has agreed to sell its minority stake in Southern Trust Mortgage.
The $3.4 billion-asset Primis said in a press release Thursday that it expects to record a pretax charge of $2.9 million in the third quarter tied to the sale. Primis also said it will not longer accrue earnings tied to the bank’s common membership interest in the mortgage lender.
Southern Trust will buy the stake from Primis in a transaction that is expected to close in the fourth quarter. The mortgage lender will continue to be a borrower of the bank.
Primis bought a 44% stake in the mortgage lender from Middleburg Bank in 2014.