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.