MINNEAPOLIS - Metropolitan Financial Corp. said it would report a before-tax gain of $31.2 million in the current quarter as a result of restructuring its balance sheet.
The Minneapolis-based thrift company sold about $930 million of mortgage-backed securities over the past week in an effort to reduce exposure to interest-rate risk on 30-year fixed-rate mortgages, said Paul A. Lipetzky, president and chief executive officer.
Most of the proceeds of the sale will be used to repay $525 million in Federal Home Loan Bank advances.
Mr. Lipetzky said that through Metropolitan, remained committed to originating mortgage loans, it intends to sell most of its 30-year fixed-rate production into the secondary market and retain the servicing.
The company also announced an increase in its quarterly dividend to 7 cents a share, from 5.5 cents, payable July 31 to shareholders of record of July 15.