QNB Corp. in Quakertown, Pa., restructured its securities portfolio.
The company said in a press release that it sold $254.4 million of low-yielding securities and unwound $162 million of pay-fixed swaps, resulting in a net pretax loss of $26.2 million. The securities sold represented about 46.8% of QNB’s entire portfolio.
Net proceeds will be used to buy higher-yielding securities and to fund loan growth. It should take about four years for QNB to earn back the loss.