BCSB Bankcorp restructures balance sheet |
|
|
|
Published
:
Wed, 21 Mar 2007 22:54
|
BALTIMORE (AP) - The company that owns Baltimore County Savings Bank FSB said Wednesday it will sell about $250 million in securities and loans to cut its interest rate risk as it reorganizes.BCSB Bankcorp Inc., which decided in February to reorganize from a mutual holding company to a stock holding company, expects the sales to decrease total assets by about $175 million and result in a $4.8 million charge in the quarter ending March 31.Specifically, BCSB said it will sell about $180 million of mortgage-backed securities and investment securities yielding an average of 3.51 percent. The majority of net proceeds will be used to prepay $104 million of Federal Home Loan Bank advances with an average cost of 4.97 percent.The company, which runs 18 branches in the Baltimore area, also will sell $73.9 million of mutual funds and fixed-rate, single-family mortgage loans with a weighted average yield of about 5.11 percent. About 75 percent of the proceeds will go to buy investment securities yielding about 5.55 percent.BCSB said the restructuring will reduce its interest rate risk, improve its interest rate spread and enhance its capital ratios.The company also said it has told the Office of Thrift Supervision that it will not pay dividends or incur debt without approval from the office, which must approve the company's reorganization.BCSB Bankcorp shares dropped 4 cents to close at $15.05 on the Nasdaq Stock Market.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
|
|
|
|
Print this Story
Nippon Sheet Glass firms up bid to buy Pilkington 