Plumas Bancorp in Reno, Nev., used proceeds from the sale-leaseback of branches to unload underwater securities during the first quarter.
The $1.6 billion-asset company said in a press release that it sold $115 million in securities at a $19.8 million loss. Plumas said that, between December and late March, it bought $120 million of higher-yielding securities.
Plumas said it sold nine branches in mid-February for a $19.9 million net gain on sale. The closing date for a separate agreement to sell three office properties for $7.9 million has been extended to mid-September.
Plumas had previously disclosed the branch sales, stating at the time that it might use proceeds to sell securities at a loss.