NSTS in Illinois divests mortage ops ahead of sale to Brookfield

NSTS Bancorp in Waukegan, Ill., sold its mortgage business to comply with the terms of its pending sale to Brookfield Bancshares in Brookfield, Ill.

The $333.4 billion-asset Brookfield agreed in May to pay $73.7 million in cash for the $266.6 million-asset NSTS in a deal expected to close in the fourth quarter.

NSTS transferred certain assets, including real estate leases, third-party vendor contracts, trademark rights and other IT assets to an unnamed national mortgage lender. The lender hired a “substantial majority” of the operation’s 12 employees.

NSTS said it does not expect to recognize any material gain or loss or incur any material expenses tied to the divestiture.