A Virginia-based bank holding company has decided to exit the mortgage-lending business.
Millennium Bankshares Corp. will wind down its mortgage operating subsidiaries, according to an announcement Thursday.
"Although the mortgage banking business was profitable under the restructuring which took place in September 2005, management determined that it was in the company's best interest to focus its efforts solely on core banking strategies," said Carroll C. Markley, Millennium chief executive, in the announcement. "We were concerned about future volatility in earnings as a result of the soft housing market and wanted to eliminate, going forward, the risks normally associated with mortgage banking activities."
Millennium will delay its 2006 earnings release until it can determine the amount of wind-down costs that may be incurred. The company intends to take any one-time charges in the fourth quarter.
In addition to the closing of mortgage operations, the company's corporate strategy includes a branch realignment in which it will move its Reston and Great Falls, Va., offices to Sterling, according to the announcement.
Millennium also said that it reached a settlement in the lawsuit filed last July by a former management employee of Millennium Capital Inc. that did not result in a material charge.