Farmers National Banc Corp. in Canfield, Ohio, restructured its securities portfolio during the first quarter.
The $5.1 billion-asset company said in a press release that sold $44.3 million of securities at a $2.1 million pretax loss. Proceeds were reinvested into securities with yields 200 basis points higher than those sold.
Farmers National said it should take between two and three years for the company to earn back the securities loss.
“The company expects bond market volatility to continue in 2024 and anticipates that it will continue to allow the size of the securities portfolio to shrink via runoff to optimize profitability and provide liquidity,” the release said.
Farmers National’s earnings were flat when taking into account $4 million of merger-related expenses from a year earlier. Net interest income fell by 13% to $31.7 million, while noninterest income decreased by 20% to $8.4 million.