BCSB Bankcorp Inc., Baltimore, is restructuring its balance sheet by selling part of its investment portfolio (including mortgage-backed securities) and paying off Federal Home Loan Bank advances.The company is selling $180 million of MBS and investment securities, which had an average yield of 3.51%. Most of the proceeds will be used to prepay $104 million in FHLBank advances, which have an average cost of 4.97%, the company said. The rest of the proceeds will be invested in FHLBank-Atlanta overnight deposits and will be used to fund certificate-of-deposit accounts that will close in the future. Baltimore County Savings Bank FSB is reducing the use of CDs as a funding source. The company also plans to sell $73.9 million of mutual funds and fixed-rate single-family mortgages that have an average yield of 5.11%. BCSB said it will use three-quarters of the proceeds to purchase investment securities with an expected yield of 5.55%, and use the rest to originate commercial mortgage loans. The holding company will take a $4.8 million after-tax charge to income in the current quarter as a result of the restructuring.

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