Dime Community Bancshares in Hauppauge, N.Y., which recently raised capital, repositioned its securities portfolio and began winding down its pension program.
The company said in a press release that it sold $379 million of debt securities, using the proceeds to buy $379 million of higher-yielding debt securities. Dime expects to recognize a $43 million pretax loss from the sale.
Dime also said it has started distributing payments to eligible participants of a legacy pension plan its board voted to terminate. The termination is expected to cost Dime about $1 million in the fourth quarter
The plan’s remaining benefit obligations are expected to be distributed in the first quarter, which will create an additional expense of about $2 million.