Rhinebeck Bancorp in Poughkeepsie, N.Y., repositioned its securities portfolio.
The company said in a press release that it sold $71 million of available-for-sale securities at a pretax loss of $12 million. The proceeds were reinvested into new securities offering higher yields.
The transaction is projected to increase earnings per share by 12 cents and the net interest margin by 0.17% over the next 12 months.
“This strategic restructuring is a positive move that will provide a long-term benefit to the bompany, our shareholders and the bank’s customers,” Rhinebeck Bank President and CEO Michael Quinn said in the release.
“It makes sense to take advantage of market conditions to obtain higher yields on securities, and allows us greater flexibility in managing balance sheet growth moving forward,” he added.