Orrstown Sells $185.6 Million in Securities to Raise Yields

Orrstown Financial Services sold available-for-sale securities with an amortized cost of $185.6 million, saying it will reinvest the proceeds in assets with a higher estimated yield. The company expects the move to produce a $13.8 million pre-tax loss in the fourth quarter.

Today, 02:56· Money Talk· 1,012 reads

Orrstown Sells $185.6 Million in Securities to Raise Yields

The securities sold carried a weighted average yield of 3.13%. Orrstown plans to use the proceeds to buy securities with an estimated weighted average yield of 5.2%, according to the company.

Orrstown Financial, the holding company for Orrstown Bank, expects the repositioning to add to net income, net interest income, net interest margin and return on average assets in future periods.

Orrstown Sells $185.6 Million in Securities to Raise Yields

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