KANSAS CITY, Mo., January 11, 2023 /PRNewswire/ — NASB Financial, Inc. (OTCQX: NASB) and its thrift subsidiary North American Savings Bank, FSB (collectively “NASB” or the “Company”) announced on Friday, January 6, 2023, that it is exiting the Company’s direct-to-consumer lending business that originates home loans nationwide for sale in the secondary market. The Company’s commitment to national and local housing lending for its portfolio is unchanged and will continue to be a major part of the bank’s loan production going forward. In addition, the NASB Kansas City loans for residential construction and land development remain in focus, as do loans for commercial real estate in the country.
“This was a difficult decision, but we believe it is in the best interest of the Company, given the current challenging market conditions highlighted by rapidly increasing interest rates in 2022, low or shrinking housing inventory and double-digit median home price growth,” he said. Tom Wagerschief executive officer of the NASB.
As a result of exiting this business, the Company currently estimates that it will incur total pre-tax costs of approximately 3.8 million dollars to 4.6 million dollars in the second quarter of fiscal 2023, with personnel costs accounting for approximately 40%, contract terminations accounting for approximately 40%, and other related costs accounting for approximately 20% of total pre-tax costs. The Company currently estimates that the exit from this business will result in total future cash payments in the range of 3.4 million dollars to 4.2 million dollars.
NASB Financial, Inc. is the unique savings holding company for North American Savings Bank, FSB. Since 1927, NASB has served the financial needs of customers by providing a range of personal banking and credit products in the Kansas City metro area. Nationwide, NASB offers competitive residential and commercial mortgages with the safety and security of a federal institution. For more information, visit nasb.com.
Caution regarding forward-looking statements
This press release includes “forward-looking statements”, which are statements, other than statements of historical fact, regarding the Company’s prospects, plans, financial position and business strategy, including those statements relating to the Company’s going out of business of direct consumer lending, the timing and amounts of fees or costs in connection therewith and other statements about expectations in connection with the mortgage market and the Company’s exit from the business of direct consumer lending. Furthermore, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “plan,” anticipate,” “believe” or “continue” or negative words of these expressions or variations thereof or similar terminology. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, the Company cannot guarantee that these expectations will prove to be correct . All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated by the relevant forward-looking statement. Important Factors That Could Cause Actual Results to Differ Materially from Our Expectations include those identified in our OTC filings, as well as the Company’s ability to successfully exit the direct consumer lending business, including within the expected time frame and the occurrence of unexpected additional costs or related costs. The forward-looking statements included herein speak only as of the date of this press release, and the Company undertakes no obligation to publicly announce any changes to such forward-looking statements to reflect events or circumstances after the date of this release or to reflect occurrence of unforeseen events, unless required by law.
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SOURCE NASB Financial, Inc.