Orrstown Financial Services, Inc. Announces Execution of Strategic Repositioning

Orrstown Financial Services announced a strategic repositioning of its available-for-sale securities portfolio, selling $185.6 million in lower-yielding securities (3.13% yield) to purchase higher-yielding securities (5.20% yield). While the transaction will result in a $13.8 million pre-tax loss in Q4 2026, the company expects it to be accretive to future net income, net interest income, and margins. Regulatory capital ratios will be temporarily reduced by approximately 20-22 basis points but remain well above well-capitalized thresholds.