First Internet Bancorp in Fishers, Ind., plans to exit the consumer mortgage business.
The $4.3 billion-asset company said in a press release that the decision reflects a “steep decline in mortgage volumes and the negative outlook for mortgage lending over the next several years.”
The exit, which will take place in the first quarter, includes the company’s nationwide digital direct-to-consumer platform that originates residential loans for sale in the secondary market.
First Internet expects to incur $3.3 million of pretax expenses in the first and second quarters. The move should reduce annual noninterest expense by about $6.8 million and increase annualized pretax income by roughly $2.7 million, with 80% of the benefit realized in 2023.
First Internet said the pullback does not include its commercial construction and land development business.