The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Franklin Financial in Pa. restructures securities portfolio

Franklin Financial Services in Chambersburg, Pa., restructured its securities portfolio.

The $2 billion-asset company disclosed in a regulatory filing that its bank sold about $46.7 million of lower-yielding U.S. Treasury debt at a roughly $3.4 million after-tax loss.

The proceeds were used to buy higher-yielding investment securities, including U.S. Agency residential mortgage-backed securities and private-label residential mortgage-backed securities.

The company said it expects to recover the after-tax loss in just over two year when paired with a pay fixed swap placed on the new securities.

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