The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

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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