Independent Bank Group in McKinney, Texas, which is in the process of selling itself to SouthState in Winter Haven, Fla., is exiting the mortgage warehouse business.
The $18.6 billion-asset company said in a press release that the move should increase capital and liquidity.
Independent said it began notifying customers and that it will stop funding new mortgage warehouse purchase loans in the fourth quarter. It had $392 million of mortgage warehouse purchase loans on its balance sheet on Sept. 30