FVCBankcorp in Fairfax, Va., has restructured its balance sheet.
The $2.3 billion-asset said in a regulatory filing that it sold $61.4 million of securities at an $8.5 million after-tax loss.
The company plans to initially hold the proceeds in its cash accounts with the Federal Reserve before paying down high-cost funding and funding new loan growth.
The restructuring is expected to be accretive to net interest income, net interest margin and return on average assets in future periods. It should take less than three years to earn back the loss that will recorded in the fourth quarter.