Legacy Revamps Portfolio With MBS Sale

The Legacy Bank, Harrisburg, Pa., has completed a restructuring of its marketable securities portfolio by selling chiefly mortgage-backed securities, resulting in an after-tax loss of about $400,000 in the fourth quarter, according to George H. Groves, the bank's chairman and chief executive officer.The securities have a total book value of approximately $24 million, a weighted average yield of 3.77%, and an average expected life of 2.8 years. The bank said the proceeds of the restructuring will provide the liquidity to avoid a high-cost refinancing of about $24 million of time deposits maturing in the next 60 days. "The bank does not anticipate a significant impact on stockholders' equity because the securities were sold exclusively from Legacy's available-for-sale security portfolio and, accordingly, were already carried on the balance sheet at current market values," the bank said. Legacy can be found online at http://www.thelegacybank.com.