NewAlliance Bancshares Inc. in New Haven, Conn., said Monday that it would record a pretax loss of $28.3 million spread over two quarters to restructure its balance sheet.
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The $8 billion-asset company said it would record the bulk of the loss - $22.6 million, or 14 to 15 cents a share - in its second-quarter results as a writedown of securities to fair value.
The company said it expects to recover its loss through increased interest income within 30 months. NewAlliance sold $787.3 million of securities and used proceeds to buy higher-yielding securities. The transaction involved 33% of its investment securities portfolio and boosted the yield on the overall portfolio by 50 basis points.
