United Bankshares Inc. of Charleston, W.Va., said it is repositioning its balance sheet by selling securities and paying off debt.
The $6.8 billion-asset company announced Monday that it had prepaid a $50 million Federal Home Loan Bank advance that had an interest rate of 5.06% by borrowing overnight funds at 4.84%. It also ended a fixed-rate swap associated with the advance.
There was no prepayment penalty on the advance, and ending the swap resulted in a pretax gain of $3.1 million.
United also sold $86 million of impaired, collateralized mortgage securities, resulting in a $2.9 million charge for the first quarter.
With the proceeds of the security sale and the swap termination, United reduced overnight Federal Home Loan Bank borrowings by about $86 million. The company, which plans to release its first-quarter earnings report April 26, called the restructuring's effects on net income "minimal."
