The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Banks continue to scrub securities portfolios in fourth quarter

More banks continued to absorb losses from securities sales during the fourth quarter.

Carter Bankshares in Martinsville, Va., sold $30 million of securities at a $1.5 million loss. The $4.5 billion-asset company, which reported a $1.9 million net loss in the fourth quarter, said it should take less than a year to earn back the loss as proceeds are reinvested in higher-yielding assets.

Berkshire Hills Bancorp in Boston lost $1 million in the fourth quarter after selling $267 million of securities at a $25.1 million loss. The $12.4 billion-asset company said that proceeds were used the repay wholesale borrowings.

West Bancorp. in West Des Moines, Iowa, sold $11.3 million of securities at a $431,000 loss. The $3.8 billion-asset company said it reinvested the proceeds into its loan portfolio; the loss should be earned back in about a year.

TriCo Bancshares in Chico, Calif., sold $46.9 million of securities at a $120,000 pretax loss. The $9.9 billion-asset company said it should take less than nine months to earn back the loss.

Catalyst Bancorp in Opelousa, La., sold securities at a pretax loss of $92,000. The $270 million-asset company said the cash proceeds from the sale was $1.9 million.

MidWestOne Financial Group in Iowa City sold $115.2 million of securities at a $5.7 million loss, using the proceeds to buy $63.3 million of higher-yielding securities and reduce short-term borrowings. (The $6.4 billion-asset company sold $231 million of securities in February at a $13.2 million pretax loss to pay of FHLB borrowings and buy higher-yielding, floating-rate securities.)

First Mid Bancshares in Mattoon, Ill., was an exception, reporting a $46,000 net gain from its securities sales. The $7.6 billion-asset company sold bonds it inherited from its purchase of Blackhawk Bank, using the $79.7 million of proceeds to reduce brokered CDs and wholesale borrowings.

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