First South Bancorp in Washington, N.C., has acquired a portfolio of mortgage servicing rights.
The $961 million-asset company said in a press release Monday that the rights are tied to 452 "high-quality" Freddie Mac and Fannie Mae loans with an unpaid principal balance of $84.6 million. First South did not disclose the identity of the seller or the price it paid for the loans, all of which are for properties in North Carolina. A "significant portion" of the borrowers live in areas where the bank has operations.
With the purchase, First South now holds mortgage servicing rights with a total value of $2.8 million; the company also services $377 million in mortgages for others.
"Adding this servicing portfolio to our existing book of business allows us to increase our level of noninterest income while improving our operating efficiency as we leverage the bank's resources," Bruce Elder, president and chief executive of First South's bank, said in the release.