Pioneer Bancorp in Albany, N.Y., and Citizens & Northern in Wellsboro, Pa., repositioned their securities portfolios last month.
The $2 billion-asset Pioneer disclosed in a regulatory filing that it sold $74.5 million of available-for-sale securities at a pretax loss of roughly $5.6 million. Proceeds were used to buy higher-yielding interest-earning deposits with banks.
Pioneer said it ultimately plans to reinvest the proceeds into securities and loans during the first quarter in transactions that should increase the company’s interest income by about $3.4 million over the next 12 months.
Separately, the $2.5 billion-asset Citizens & Northern sold $45.5 million of securities at a pretax loss of $3 million. C&N used a portion of the proceeds to buy $13.7 million of higher-yielding debt securities.
The company also disclosed in a regulatory filing that it repositioned its investments in bank-owned life insurance, surrendering some of the instruments while using proceeds from the securities sale to buy $30 million of BOLI.
C&N said it will recognize a roughly $1.3 million net charge to earnings because of the moves. The company expects to recover the fourth-quarter loss in less than a year, including an estimated positive contribution to net income of $1.5 million in 2024.