GlobeNewswire·Nov 9, 2026, 5:00 PM ET

Orrstown Financial Services, Inc. Announces Execution of Strategic Repositioning

Orrstown Financial Services executed a strategic repositioning of its available-for-sale securities portfolio on November 9, 2026.
The company sold AFS securities with a total amortized cost of $185.6 million, a weighted average yield of 3.13%, & a weighted average remaining life of 8.4 years.
Proceeds from the sale are being used to purchase higher-yielding AFS securities with an estimated weighted average yield of 5.20%.
The transaction is estimated to result in a net pre-tax loss of $13.8 million, which will be included in the fourth quarter of 2026 financial results.
The loss will have only a nominal impact on tangible book value as it was previously reflected in accumulated other comprehensive loss.
The strategic repositioning is expected to be accretive to net income, net interest income, net interest margin, & return on average assets in future periods.
The estimated pre-tax loss is projected to reduce the bank's risk-based capital ratios by approximately 22 basis points & its leverage ratio by 20 basis points as of September 30, 2026.
All regulatory capital ratios will remain well above well-capitalized thresholds, & the capital impact is expected to be recovered within two quarters.