Add 1895 Bancorp of Wisconsin in Greenfield to the list of banks repositioning their balance sheets.
The $553 million-asset company said in a press release that it sold $21.4 million of securities for an after-tax loss of $1.4 million. Proceeds contributed to the purchase of about $21.4 million of government-sponsored mortgage-backed securities.
The transactions should increase earnings by about $700,000 annually, meaning the loss should be recouped in about two years.
The loss will have a neutral impact on shareholders’ equity and book value per share.