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Bank of Marin purges securities from its balance sheet

Bank of Marin Bancorp in Novato, Calif., recently purged securities from its balance sheet.

The $4.1 billion-asset company said in a press release that it sold $82.7 million of securities in July at a net loss of $2.8 million. The proceeds will be held in cash as part of the company’s liquidity strategy.

The loss will be offset by a $2.8 million gain from selling the company’s remaining Visa Class B restricted common stock.

Bank of Marin also entered into interest rate swap agreements, totaling $101.8 million, to hedge interest rate sensitivity and protect certain securities from changes in fair value.

The company’s second-quarter earnings fell by 59% from a year earlier, to $4.6 million, largely reflecting higher funding costs.

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