CB Financial Services in Washington, Pa., has repositioned its balance sheet.
The company said in a press release that it sold $129.6 million of investment securities at an after-tax loss of $9.3 million. The securities included $121.1 million of mortgage-backed securities/collateralized mortgage obligations, $5 million of U.S. government agency securities, and $3.5 million of municipal securities.
The company said it plans to buy $117.8 million of higher-yielding securities. The moves should add about 41 cents to annual earnings per share. It should take about four years for the company to recover the after-tax loss.
“We elected to proactively reposition our securities portfolio during the third quarter, which we anticipate will provide significant future earnings benefit,” President and CEO John Montgomery said in the release.