Peoples Financial Services in Scranton, Pa., plans to record a large gain in the fourth quarter after its sells Visa shares.
The $3 billion-asset company said in a regulatory filing that its bank on Oct. 8 agreed to sell nearly 45,000 Class B shares, adding that the entire purchase prices will be realized as a pretax gain.
The sale is expected to settle later this month with the gain to be reported in the company’s fourth-quarter results as an after-tax gain of $9.6 million.
The transaction will have a positive impact on the bank’s regulatory capital, which will be used for capital management and to support the company’s organic growth.
The bank received roughly 73,000 Class B Visa shares in March 2008 as part of its membership interest. More than 28,000 shares were redeemed in connection with Visa’s initial public offering in 2008.