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.
-
The top five producers had an average dollar loan volume of more than $140 million in 2023.
1h ago -
The threats to companies loom as borrowers face soaring homeowners insurance costs, ex-Ginnie Mae head Ted Tozer explains.
2h ago -
The Federal Housing Administration, the Department of Veterans Affairs and the Federal Housing Finance Agency have started gathering data and analyzing how climate risk will impact the housing ecosystem.
April 22 -
A special committee is exploring any possible structural "strategic alternatives," which would be aimed at increasing shareholder value, the real estate investment trust said.
April 22 -
An insurance-indexed debt-to-income ratio could help mitigate borrowers' rising premiums, and help maintain a healthy servicing portfolio, experts said.
April 22 -
But the number of properties whose mortgage is more than 90 days late is at its lowest since 2006, ICE Mortgage Technology said.
April 22