The Bank Slate


SR Bancorp in N.J. sells underwater securities

SR Bancorp in Bound Brook, N.J., has sold “the vast majority” of its available-for-sale securities portfolio.


The $1.1 billion-asset company said in a press release that it sold $35.4 million of lower-yielding investment securities for a pretax loss of about $4.4 million.


The company expects to redeploy the $30.9 million of proceeds into roughly the same amount of residential and commercial real estate mortgages, which is expected to result in $1.4 million in pretax earnings.


It should take a little more than three years for the company to earn back the loss from the securities sales.

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