BayFirst Financial in St. Petersburg, Fla., has closed three mortgage offices after shutting down its primary consumer direct mortgage business.
The $889 million-asset company said in a regulatory filing Wednesday that the closure was part of a broader restructuring of its residential mortgage division. BayFirst closed residential loan production offices in Overland Park, Kan.; New Albany, Ohio; and Tampa, Fla.
The restructure reflects “reduced volume due to a lack of refinance demand in the current rising rate environment which directly impacted the consumer direct business line,” the filing said.
The company will continue to operate 20 traditional retail mortgage offices and will expand its LoanBud division, which serves small business owners on a direct-to-consumer basis.
BayFirst said it expects to incur one-time pretax restructuring charges of about $630,000 in the second quarter, including $250,000 tied to severance and related payments, $145,000 of write-offs tied to fixed assets and $235,000 of valuation adjustments on leased branch facilities.
BayFirst announced in April that it had laid off 62 mortgage employees.