CB Financial Services in Washington, Pa., has repositioned its securities portfolio.
The $1.4 billion-asset company said in a press release that it sold $79.4 million of securities at an after-tax loss of $8 million. The bank bought $69.3 million of higher-yielding mortgage-backed securities and collateralized mortgage obligations issued by U.S government-sponsored agencies.
The moves should add $1.8 million to annual after-tax earnings. It should take a little more than four years to recoup the loss from the securities sales.
“In conjunction with the recent sale of our insurance agency subsidiary, we believe this is a prudent use of capital designed to enhance long-term shareholder value as well as improve earnings,” John Montgomery, the company’s president and CEO, said in the release.