A trio of banking companies disclosed securities sales.
Avidbank Holdings in San Jose, Calif., said that a securities sale contributed to its $37.7 million third-quarter loss. The $2.4 billion-asset company sold $274.7 million of securities at a $62.4 million loss. The company purchased $163.2 million in higher-yielding securities and paid off short-term borrowings using proceeds from its initial public offering and securities sales.
CB Financial Services in Washington, Pa., lost $5.7 million in the third quarter after selling $129.6 million of securities at a $9.3 million after-tax loss. The company used the proceeds to buy $117.8 million of higher-yielding securities. The $1.6 billion-asset company said the moves should add nearly 19 basis points to the net interest margin and about 40 cents to annual earnings per share.
“We are pleased with our third-quarter results as continued balance sheet repositioning, including the realignment of our securities portfolio, drove strong core earnings,” John Montgomery, CB Financial’s president and CEO, said in a press release. “During the third quarter, we replaced low-yielding indirect auto and residential mortgage loans with higher-yielding, relationship-driven, commercial loans.”
A securities sale didn’t put a huge dent into the third-quarter results at 1st Source in South Bend, Ind. Profit at the $9 billion-asset company actually rose by 21% from a year earlier, to $42.3 million. The company reported a $1.9 million loss after selling low-yielding securities.