First Savings Financial Group in Jeffersonville, Ind., is getting out of national mortgage lending.
The $2.3 billion-asset company said in a regulatory filing that it will exit the business by the end of this year.
First Savings said that loan applications fell to their lowest level in two decades this year due to rising mortgage rates and housing prices, a decline in 1-4 family housing inventory and continued economic uncertainty.
The exit will cost the company $2.5 million in the last quarter of 2023, including $1.8 million in employee-related costs and $600,000 tied to contract terminations.
First Savings will continue to originate residential mortgages in its branches.