CertusBank announced Monday that it received letters of intent from two companies interested in buying the mortgage and wealth management divisions the bank is selling as part of an ongoing restructuring effort.
Officials said restructuring would help to improve the bank’s financial performance. CEO John Poelker said in a statement that the bank is “undoing structural and operational components of the company that are no longer consistent with our strategic transition toward a more traditional community banking business model.”
The company plans to focus instead on core banking services, which include (but are not limited to) small business financing, consumer lending and retail banking services, said Emily Ledbetter, vice president of corporate communications.
About 120 employees work in the mortgage and wealth management divisions, the majority of which Poelker said will be employed with the acquiring companies.
Retail mortgage lender AmeriSave Mortgage Corporation issued a letter of intent to acquire a large portion of CertusBank’s mortgage business, including a majority of employees and facilities. AmeriSave operates in 49 states and Washington, D.C., primarily through its online lending platform.
Vincent Molinari, CEO of Eximius Holdings LLC, provided a letter of intent to acquire CertusSecurities Inc. and CertusInvestment Advisors LLC, the bank’s wealth management businesses. Molinari’s investment group will take ownership of CertusBank’s brokerage and investment advisory platform and some associated employees.
“We take the needs of our customers very seriously. If it makes sense to offer services inside CertusBank branches – including through industry-leading partners – we will explore those options,” Ledbetter said.
CertusBank had assets of more than $1.5 billion as of June 30, the company said in a statement. Its most recent FDIC filing on June 30 listed total deposits at $1.35 billion.
The bank posted a $24 million net income loss since the beginning of 2014, $15 million of that during the second quarter of 2014, according to the latest earnings report filed with the Federal Deposit Insurance Corporation.
Poelker was named CEO in August after assuming the interim position in April. His appointment coincided with the ousting of the bank’s leadership team, president Angela Webb and co-CEOs Milton Jones and Walter Davis, over accusations of mismanagement. The three subsequently filed suit in federal court in April implicating the board and a shareholder in a civil conspiracy to smear them.