Auburn National Bancorp in Alabama announced two moves that will largely offset each other during the first quarter.

Auburn National said it will book a pretax gain of $3.3 million in the first quarter after its bank sold its interests in three affordable-housing limited partnerships that had a carrying value of $5.2 million. The $776 million-asset company said net proceeds from the sales would total about $8.5 million. The company will also be able to recover the value of a deferred tax asset that was set to expire in 2014.

The gains will also help offset about $3.7 million in prepayment penalties that Auburn National expects to incur after it restructured its balance sheet on Thursday. The company paid off $38 million in Federal Home Loan Bank of Atlanta advances. The company said it used excess liquidity to help cover the costs of the restructuring.

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