SELINSGROVE, PA. - Sun Bancorp said it expects to take a $2.1 million hit to earnings in a restructuring of its mortgage securities portfolio to take advantage of higher interest rates.

The company decided to cash out mortgage securities yielding 6.5% and buy more Ginnie Maes with a 7.5% return "to improve yield and liquidity," said Robert J. McCormack, president and chief operating officer.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.